Pound loses ground

14 May, 2018

Nakhil Mahra

Last week was a poor week for the Pound, losing ground on all its major pairings. Weak data over the first quarter of the year, mainly due to the colder winter and ‘The Beast From The East’. This has resulted in weaker UK retail, growth and the construction sector, which has been weak for quite some time now, consistently delivering figures¬†below expectation. To put these losses in perspective, GBP has lost 8 cents to the USD in 2 weeks, meaning a purchase of 100,000 is setting you back a further ¬£6000. With the current market sentiment against Sterling, we could yet see further losses. If you have any imminent requirement speak to your account manager for some friendly guidance.

The eagerly awaited BoE meeting took place last week, with everyone waiting to hear from Carney with an update regarding any rate hike. Carney confirming Inflation and growth will be monitored before a decision is made. With nothing imminent the markets lost a cent, those hoping for 1.15 or even 1.16, that now looks a long way of the cards of what looked to be promising 3 weeks ago. With Draghi due to speak later this week, the momentum gained by the Euro could continue and rates dropping further is not completely off the cards.

This week is another busy week and some key stats to look out for

Tue 9.30 GBP Average Earnings Index
13.30 USD Core Retail sales m/m

Wed 13.00 ECB President Draghi speaks
15.30 USD Crude Oil Inventories

Fri CAD Core Retail sales