A positive day for the Pound

5 February, 2013

Graham Harborne

Finally yesterday saw a day in the FX markets where the pound was a winner! After a constant decline throughout January and 2c drop on the 1st February, yesterday brought some relief to those out there needing to sell pounds. There was limited data out yesterday although one poor reading from the eurozone did send the euro tumbling against both the pound and dollar and there is also an element of the pound being oversold in recent weeks.

Today we have already seen some positive data out from Europe and with eurozone retail sales and UK PMI due out later this morning it is likely that those readings will set the tone for the 2 currencies today. Across the pond there is little in the way of data but a few speeches financial leaders in both Europe and the States could see some market movements.

Most of the attention this week will be on the Thursday interest decisions where it will be interesting to see the tone taken by the ECB (no change in interest rates or QE is expected by either bank) who were relatively hawkish last month and markets will also be eyeing incoming BoE chief Mark Carney who will be speaking before the Treasury Select Committee and is likely to give indications as to the policy stance he hopes to adopt.

Do keep in touch with your account manager here at Currency Index to ensure you do not get caught out by the market’s volatility.