9 monthly highs for the Pound

29 October, 2013

Graham Harborne

On a day where the main news was the weather the currency markets were fairly subdued yesterday with very little in the way of data to push any single currency up or down. The Pound remained fairly range bound throughout the day until the European session close where we saw it fall away against both the Euro and the Dollar. In recent months we have see 9 monthly highs for the Pound against a basket of currencies but in the last week or so both the dollar, and more impressively the Euro, have been chipping away at the Pound. With key resistance level not being reached its seems (like the storm yesterday) that the Pound has run out of steam. We have already seen a 50 cent dip this morning as we gear up for a busy day on the data side. We have already had Eurozone retail sales released (a positive figure seen) and we are due money supply and mortgage figures from the UK shortly. The main events however will be seen across the pond this afternoon. With the US government now back in full working order (in their opinion anyway!) we have retail sales, consumer confidence and inflation data all due out today so with 5th November just around the corner we could well be in for some early fireworks this afternoon. To make sure you don’t get caught out by any sudden movements make sure you stay in touch with your account manager here at Currency Index.