A continuation in a weak pound

Yesterday we saw the pound manage to claw back small gains in the afternoon as the market makes small corrections, following Mark Carneys speech on Tuesday, announcing a push back in a UK rate rise coupled with negative US inflation data released yesterday afternoon. That being said, the downward trend is set to continue today with a quiet morning on the data front as key data releases are due this afternoon with the latest ECB Interest Rate decision at 12:45 which is set to remain at 0.05%, followed by Mario Draghi’s monetary policy statement at 1:30.For those with an upcoming euro requirement, this is one to pay attention too as rates react very quickly based on what is said.

The dollar yesterday saw a slight movement in the afternoon after the US inflation data missed expectations. It increased from 0.5% to 0.7% just slightly under expectations, so this did very little to alter the Dollars strong position and hasn’t made much of an impact on the rates to report on. However, as inflation continues to increase in the US, it gives them further possibility for another interest rate rise on the horizon.

Tomorrow’s data releases kick off first thing in the morning with Draghi speaking at 7:45am. Then EU Services and Manufacturing PMI at 9am, swiftly followed by UK Retails sales at 9:30.

With the pound continuing to deteriorate and failing to make any significant gains, keep in close contact with your Currency Index account manager if you have an upcoming requirement and if would like some more information on the types of contracts available then drop us a call on 01923 725725 today.