Pound this week continues to aim high after strong performance on the currency markets

9 September, 2013

Simon Eastman

Last week was very much about the pound, as it built on from the previous week, showing consecutive gains all last week. This is pretty much unprecedented and as such, having reached heavy resistance against most currencies including the euro, analysts feel it could be teetering on the edge of the peak, ready to fall back the other side.

The gains on Friday were helped by the US jobs market data which saw the key non-farm payrolls post a figure was under expectation so despite other jobs data being more favourable, the pound gained a cent against the dollar and this news also helped the pound push over the key resistance point against the euro, although it quickly dropped back.

This week we have a few key releases to be aware of:

Monday – EU Sentix investor confidence, US FED member speech and consumer credit
Tuesday – UK BoE credit conditions survey and inflation report hearing
Wednesday – UK average earnings and unemployment figures. RBNZ interest rate decision (overnight)
Thursday – AU employment data, EU ECB monthly report and industrial production, US jobless claims and export/import indices
Friday – EU employment data and trade balance, US inflation figures and retail sales

You can see that the UK is shy of data this week bar a couple of releases mid week, which gives the opportunity for other currencies to gain back some of their recent losses as traders have less to support the pound. It could be the ideal time for ‘profits to be taken on the recent gains by sterling so don’t be surprised if the rates do start to fall back. If you have tosend Euros in the coming weeks it may well be worth looking to forward buy at your earliest opportunity to take advantage of the peak and avoid disappointment down the line. Chat through your requirements with one of our brokers at Currency Index today.