Pound challenges recent data to struggle at last hurdle

10 September, 2013

Graham Harborne

Yesterday saw the Pound continue its recent surge and it looked set to breakthrough recent highs only to hit a brick wall. On a quiet day for data it was the Chancellor George Osborne comments that helped the Pound push on but by mid afternoon it seemed to hit a brick wall and fell over 0.5% for the remaining trading hours in both Europe and the United States. It seems that the UK is certainly on the road to recovery but perhaps investors have got a little ahead of themselves and we could well have many over bought GBP positions in the market so it would be no surprise if the Pound continued to slide this week. With little in the way of key UK data this certainly could be a testing week for the pound as it has been the positive UK data releases that have seen thePound strengthen rather than poor releases from the U.S and Eurozone. Today sees a Q2 GDP reading from Europe and apart from that it will e fairly quiet. Having said that we still have the uneasy situation in Syria that is yet to be resolved. As the worlds powerhouses try to negotiate the best step forward markets will be wary of any significant decisions being made. Any sort of military action is sure to unsettle the markets so these decisions could well play a key role in market movements this week. As always if you are needing to send money overseas then do stay in touch with your account manager here at Currency Index who will try and help you execute your transactions at the best possible time.