Bleak outlook for Sterling

Yesterday was a quiet day on data front with very little data of note, with a bank holiday in the USA the only data was released by the UK and Eurozone. Both of which, came below expectations. UK PMI figures contracted, which was largely expected and already priced into the markets as well as data from Europe falling below expectation. However with the particularly strong period the Euro is having the negative data did very little to shift the Euro – favourable sentiment currently in the market. Sterling fell below the psychological 1.30 mark once again against the USD due to poor PMI showing. A much needed boost for the USD after a few poor weeks recently and some much needed relief for USD sellers.

The euro has gained 3.3% against the GBP according to statisticians and researchers through 2017 with some suggesting that these are the trading levels we could be seeing for the next period (if not more Euro favourable). The more positive outlook by Draghi only further supporting these figures. With Italy now in a more stable position after the bailout it is likely that we could see the Euro rally for a while yet. With some even suggesting that a rate hike may not even be enough to see a upturn in Sterling fortunes. With those of you who have a requirement coming up and are waiting for a uplift in fortunes it may be worth considering to trade sooner rather than later.

Today there is no data out from the UK so any hopes of a Sterling gain are minimal. With data out from the Eurozone and the US we could see both major pairings make further ground on the Pound. Speak to your account manager today before you find that you’re priced out of your property.