Pound remains under pressure

Despite positive news from the UK and for the Pound this week Sterling remains under pressure. Yesterday we saw the Bank of England monetary policy committee vote, where 2 members voted to raise interest rates. As a result, we saw the Pound momentarily rally and break through against the Euro what has been an established level of resistance set since May last year. However, this rally was short-lived and within minutes rates had slipped back down to within the same range we have seen for months. Equally against the Dollar we saw the Pound make a short run, however once again it seemed it simply lacked the steam to hold its gains and quickly we saw them eroded. Interestingly then in a day which should have been Pound positive, it closed the day lower than it opened, despite what should have been positive news. This clearly demonstrates the ongoing negative sentiment towards the pound, as Brexit uncertainty plays on in what is a very sensitive market. We must ask therefore what will it take for the Pound to break out? Given what we have seen, those of you with short-term requirements might like to take advantage of current rates, as it seems the Pound is continuing to struggle and with pressure from a strong single currency and greenback, it is possible we may continue to see buying rates slip away.

Today is a quiet day in terms of major market data, and so sentiment and technicals will largely drive rates. US data dominates the day, and with the Pound silent in the way of data, don’t be surprised if we see rates continue to slide. Elsewhere in the world we have Canadian retail sales so those of you with requirements for Loonies would be advised to stay in close touch. Give your Currency Index broker a call today for some friendly and professional guidance if you have any upcoming requirements.