Sterling loses more ground

This week has seen Sterling continue to lose ground against the majors as the markets come to a close for the weekend. This week has seen a mix of both positive and negative data releases for the UK. Firstly on Tuesday inflation figures were released and came in lower than expected. As a result it is highly unlikely that the Bank of England will raise interest rates, with that likely to be the case the Pound is likely to suffer further with sentiment being heavily against Sterling. On Wednesday and Thursday unemployment and retail figures respectively were both released. Both came in better than expected which gave the pound a little bit of stability, however even these strong data releases couldn’t give the boost the Pound desperately needs to reverse these miserable lows. If you have a requirement for Euros in the coming months it is worth thinking about acting sooner rather than later, we have already enter the sub 1.10’s levels and if market analysts are to be believed then it may be a matter of months until we are seeing parity with EUR/GBP. Get in touch with your account manager today to find out how you can benefit from locking into one of our forward contracts.

Today is a much quieter day on the currency news front. In the euro zone current accounts data will be announced at 9.00am which could provide the Euro with an early boost should the figure be positive. In the afternoon at 1.30pm inflation figures will be announced in Canada and at 6pm in the US the oil rig count will be announced which is likely to create some volatility in the market.