Sterling Correction Continues
29 May, 2014
Yesterday saw the pound continue to slide against all major currency pairs not being helped by a lack of any major UK data. There was however a vast amount covering various EU countries, including unemployment changes in Germany, which came out worse than expected, EU money supply figures concerning mortgages and consumer confidence which posted above expectations. This gave the euro momentum to carry on its gains from Wednesday, continuing on a slow correction against its recent losses.
The afternoon we had some data from across the pond, all of little note, but with the US also gaining momentum recently, it carried on against sterling, gaining another cent whilst taking half a cent off the euro.
Today is a fairly slow data day too, with public holidays in France, Spain and Switzerland for Ascension Day. The Germans release GDP which is the only release this side of the Atlantic, while the afternoon brings a multitude of data such as GDP, jobless claims, personal consumption, homes sales and oil stocks changes. All the above could give further credence to the greenbacks recent rally and anyone looking to send money to the USA might like to consider locking in the rates sooner rather than late. Many analysts feel there could be another couple of cents to the downside on cable to watch this space for further updates over the coming days.
As the month comes to a close this week, sentiment seems to be shifting and with the new month, with new data and the all important central bank policy meetings round the corner, it might be prudent to look at fixing any exchange rates at your earliest opportunity. Call one of our experienced brokers today to discuss your requirements.
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