Pound up despite downbeat data

Sterling has risen across the board today, despite economic data showing industrial and manufacturing output showing their fastest decline in 6 months. Compared with the same month last year, industrial output was 1.7% lower, the biggest annual fall since April. Manufacturing output also fell 0.7% in October, the biggest monthly drop since April and three times the fall forecast by analysts. Despite this, sterling has made gains today, perhaps as German officials have played down prospects of a Eurozone debt agreement at Friday’s summit, focussing attention back on the ailing single currency. The European Central Bank may also announce an interest rate cut tomorrow, and possibly some plans to buy up Euro government bonds and ease credit conditions. Any of these measures would be likely to weaken the Euro, improving exchange rates for sending Euro payments, and may be being priced in to the market today. Tomorrow also sees the Bank of England announcement on quantitative easing; check back here for the latest news or call us on +44 1923 725725 for the latest exchange rates on your own transaction as news develops.