A busy day for the markets but more importantly for the Pound

The markets were helped dramatically yesterday by a raft of key data releases throughout the day. We kicked off early with a string of European GDP figures, with France and Germany both posting better than forecast figures of strong growth. This was a precursor to the EU GDP which was to follow later in the day. The positive element helped the single currency rally first, making decent gains particularly against the US dollar. Then it was the pounds turn to shine, as the Bank of England minutes came out showing a unanimous vote for holding interest rates and QE at present levels. This was to be expected and with the focus from Mark Carney resting firmly at the feet of the unemployment levels, which need to come down from 7.8% to 7% before any interest rates will rise, the markets were eagerly awaiting the jobs data. They weren’t disappointed, as average earnings posted above forecast and the claimant count for those claiming unemployment dropped. The actual unemployment level was unchanged but the markets focussed on the positives. The pound soared all day against all major currencies, gaining fresh highs against the euro and UD dollar. Against the US dollar, both the euro and pound benefited as poor inflation figures came from across the pond, coupled with better than expected EU GDP showing they’ve come out of recession. The pound was undoubtedly the winner for the day though and we had many happy clients who took advantage of the rise. Will today hold the same trend for the pound? It depends on the retail sales which come out at 9.30am and with many European markets shut for assumption day, there is a chance for further gains. But as we know, the markets are volatile and unpredictable so assuming the rates will continue the rally would be unwise. There is further inflation figures for the US as well as a few speeches from key FED members. If you have an overseas transfer to make in the coming days contact one of the brokers here at Currency Index for some friendly guidance on sending money abroad.