Flat Trading Ahead Of UK Inflation
19 September, 2018
Tuesday saw sterling keep the gains it had made recently and hold steady as another day passed with little data releases of note. Against both the USD and EUR, sterling traded within a half-cent range all day.
As China retaliated to recent trade threats from the US saying it would not be sending a delegation to the upcoming trade talks, sterling held strong while the USD remained under pressure against both sterling and the single currency. We are trading at the top of both pairings resistance ceilings so anyone looking to buy into USD with GBP or EUR is well placed to exchange sooner rather than later.
Overnight Monday, the Aussie dollar gained a percent against sterling following the release of the RBA minutes from its most recent interest rate meeting, showing renewed optimism for the economy and with trade war fears diluting among investors despite Chinas retaliation, it seems sentiment is now slightly less risk averse.
Today we see the data flows start again with UK inflation the headline of the day with a 0.1 percent reduction expected. At lunchtime, ECB President Mario Draghi makes another keynote speech, while overnight we get New Zealand GDP figures and as the bulletin from the Reserve Bank of Australia.
With rates looking good for those with sterling, but with sentiment ever so precarious with the back drop of Brexit looming and still no deal on the table, we are seeing many clients take advantage of the recent boost and cut their risk by locking into a forward contract. For as little as 5 percent deposit, you can fix your rate for up to two years, so well worth a conversation with one of the team today to discuss your options.
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