Poor day for the Pound amidst no data and as UK GDP looms
24 April, 2018
Yesterday was a flat day for the Pound. Following last week’s loses after a lower than expected inflation reading, and comments from Bank of England Governor Mark Carney suggesting we are unlikely to see as many interest rate rises as was expected saw the Pound start this week around 2 cents lower against the Dollar, and around a cent and a half against the Euro. And yesterday’s lack of data from the UK left it flat – by the end of the day, it traded against the single currency where it opened and lost around ¾ of a cent against the Greenback as the US posted better than expected housing data which allowed the Dollar to advance. This was also shown in USD/EUR with the Dollar stealing just over half a cent against the Euro.
Today is also quiet in the way of UK data, with the exception being Public sector net borrowing at 09.30 although this is not a release of major note. Euro and Dollar data dominates the day, with the main eco stats being German business condition data at 09.00 and US house pricing data at 14.00. Elsewhere in the world early this morning, we have already seen Australian inflation data headline which came in 0.1 lower than was expected at 1.9% but was overall a mixed bag, and as such the Aussie Dollar relatively flat.
So in what is another quiet day for the Pound, will we see advances from other currencies and GBP buying rates continue to diminish? To add to this there is little data out from the UK until we reach Friday when UK GDP is released, which is meant to show a contraction, and with USD and EUR data dominating the week, this could pose a problem for the Pound. Given the drop, we saw last week and with rates still relatively high when looked at in the context of recent months, now might be an opportune time to trade.
This week could be a tough one for the Pound and a poor GDP reading Friday could simply push it further down. However, should we see poor data from elsewhere and UK GDP surprises Friday we may, in fact, see the Pound regain some of the lost ground.
With so many hurdles in the coming week, regardless of your appetite for risk, you would be well advised to get in touch with your Currency Index Broker today.
Currency Index offers several ways in which you can order your currency, including methods to help safeguard your purchase, should the rate drop. So why take the risk in such an uncertain and volatile time? Give us a call for some friendly and professional guidance, and don’t be caught out with a movement in rates which could be a costly one!
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