Quiet day for UK data sees further losses for Pound

Yesterday was a very quiet for data released from the UK, and as such it offered little defence to the Euro and US Dollar which both strengthened against it throughout the day. In the morning market focus was on the Eurozone as it released a number of Ecostats. And in what was a strong morning for the single currency- all of its results came in as, or better than was expected. This included German GDP growth, increasing to 1.9% from a predicted 1.8% and previous 1.7%, and also Eurozone Industrial production which showed huge improvements in both Month on Month and Year on Year comparisons. As a result of these strong figures the Euro gained around a cent against the Pound and also against the Dollar.

In the afternoon the market focus shifted across the pond to the US as they released Jobless claims and Export and import data. This showed a reduction in US jobless claims, and overall strong figures for both import and export index stats. Consequently the Dollar clawed back half a cent of its losses to the Euro during the mornings trading and a cent against the Pound following the data in the afternoon. With no data releases of note and offering nothing to fight back with, it was the pound that was loser of the day closing trading a cent down against both.

Today is another day where there is no data released from the UK, and as such the Pound will be at the behest of the market and other currencies performance. In the morning we have German Wholesale Price index and Spanish inflation data. However the real watch of the day will be the USD as it dominates the releases, with retail sales, producer price index and business inventory data headlining amongst others.

Given what happened yesterday, the underlying market sentiment and currently strongly performing Dollar will we see another bad day for the Pound? Certainly with no data to provide a defence this is a possibility, and as we await the Supreme court’s decision over Brexit and article 50 the pound is highly exposed. If you have an upcoming requirement give your Currency Index broker a call today for some friendly guidance on how to get the most out of your transfer in what is a very volatile time in the currency market.