Carney comments send sterling lower

As the currency markets opened this morning, Sterling had already lost some ground on the Euro, this could have been from comments made by Mark Carney on the UK economy earlier in the morning. Being interviewed live on TV at 7am the Bank of England Governor said that since the Brexit vote, the economy has slowed down in the UK and he also pointed out that the UK was previously the best performing country in the G7 but since the referendum has now become the worst. With still no deal being struck with European Union on the United kingdom’s exit it could be a long time yet until we see any signs of a recovery in Britain’s economy and as a result marring Sterling’s recovery against the major currencies. Alongside with a poor performing economy the UK’s political situation is still in a fragile state which again aids the Pound’s demise.

It is not all doom and gloom for Sterling though as it clawed back over half a cent on the Euro throughout the day’s trading yesterday, the UK posted positive retail sales figures which posted 0.2% better than the expected figure of 0.1%. Yesterday was the last of the major data releases for the month so now the market will be mainly trading on sentiment. As we know sentiment is against Sterling at this moment in time and with that being said it may be prudent to get your requirement for currency in place should you be selling sterling. Should you not have an immediate requirement but want to take advantage of today’s rate then a forward contract may be the option for you. Contact your broker her at currency index for more information.