Mixed day for the USD

15 March, 2018

Nakhil Mahra

With no data out from the UK this week, Sterling gains/losses are all dependent on releases from its major pairings. First up was Mario Draghi, speaking in Frankfurt shedding more light on the QE programme. Expressing that the above-predicted growth across Europe is encouraging as well as a prediction for inflation to keep moving “in the right direction”. Further supporting Euro strength and that the predicted levels of 1.05 by the end of 2018 are still very likely and heaping further on the already weak Sterling. With EU inflation moving in the right direction, should this remain consistent the end of the QE programme could happen before expected. Following Draghi’s speech was low key data from Europe, coming in as expected, maintaining the current GBPEUR level as we saw no major changes yesterday.

Mixed USD data saw Pound make 0.5% gains on the Greenback. Retail sales coming in 0.2% below expectation before PPI was above expectation. The recent USD positivity and sentiment quickly fading and sees the Greenback lose its gains made last week. With a interest rate hike still being talked about we could see the USD claw back lost ground yet. Should you have a USD requirement coming up now would be as good time as any to consider your purchase.

Next week is a busier week for the Pound, which sees the BoE meet as well as the last key data releases for the month, with the current negative sentiment surrounding GBP any data falling below expectation could see Euro make further gains on Sterling. With any swing in the markets directly effecting your purchase keep in touch with your account manager to discuss your best options.