Pound continues to struggle

9 March, 2017

Nakhil Mahra

With the uncertainty surrounding Brexit still looming and still no definite date for Article 50 being triggered, we saw the pound struggling against most major currencies. With a relatively quiet day in the market yesterday the rates were quiet for much of the day. Yesterday saw the UK budget announcement, where we heard that the employment rate had hit a high of 31.8 million people.

The Office for Budget Responsibility (OBR) are forecasting that the economy will grow further by 2% through 2017 and forecasting borrowing to fall. The Pound, however, did not make any ground on the EUR/USD even after some positive forecasts figures.

The US posted higher than expected results with their employment figures and unit labour cost coming in as expected which saw the U.S dollar continue its resurgence against the pound. Canada posted higher than expected housing data with rates slightly lower from where they started. If this trend continues, we could see the Pound slide even further in coming weeks.

Today will see the European Central Bank (ECB) Interest Rate Decision and Statement as well as US Jobless Claims. If both turn out positive it could set Sterling back even further. If you have any currency requirements or would like some advice, contact your account manager today.