Sentiment outweighs data for currently weak GBP

Yesterday’s trading saw further losses for the pound following Wednesdays Bank of England report. The slowdown of inflation and resulting delay in interest rate hikes has seen GBP weaken over the past 48 hours – against USD it has lost 3 cents whilst against the Euro it has lost 2.

With no data released yesterday for GBP it remained at the mercy of the markets. The Eurozone had an astonishing 15 releases coming from Spain, Germany, Italy and France. What was more astonishing is that all bar 2 of these came in as predicted- a strange set of results perhaps, but only helped the Euro gain against the pound. It was also strange day for GBP/USD – despite two negatives in an increase in US jobless claims and a reduction in crude oil stocks it gained around a cent and a half. It would seem then at present the negative sentiment for GBP following Wednesday is outweighing the data, certainly against the currently flying USD. Highlighted more so by the fact USD lost around 50 pips against the Euro following its poor data release whilst gaining against GBP.

Today once again we see no data out from the UK whilst we have some heavy hitting releases from the other majors, somewhat a concern perhaps for the pound. In the morning the focus is on the Eurozone with a raft of inflation data and then the big release of GDP. Without doubt further positive results here will only see it steal further ground as it has done since Wednesday. In the afternoon the focus moves across the Atlantic as we see the U.S post retail sales and release the Reuters Consumer Sentiment Index, 2 pieces of data which have the ability to move rates.

This morning with the focus largely on the single currency with the pound is at its mercy, and if EUR data is positive we will only see further losses and a drop in the rate. We have already seen this morning Italian and German data come in strong so has the assault started? So

This afternoon as the markets’ focus will be on the greenback it will be an interesting watch to see how it performs particularly against the pound following yesterdays slightly strange results. Without doubt though we have seen a shift in sentiment and as a result pound rates are dropping as we enter a period of weakness for GBP, so any of you with requirements would be well advised to consider securing now to prevent any further losses.

Speak to your Currency Index broker today for – with the pound currently faltering and fast falling from its recent highs we can provide with friendly and professional guidance on how to get the most out of your transfer.