Sterling makes temporary gains

13 April, 2016

Ashley Finill

So far this week the Pound has been relieved from recent ongoing pressure as positive data figures from the UK as sterling clawed back 2 cents on the Euro and over a cent on the Dollar. Retail sales and Consumer Price Index came in over expectation and surged the pound on yesterday morning, however as sterling is currently still on its seemingly never ending downward trend these gains do not last very long and that was evident as the Cent gained over the Euro in the morning had diminished within an hour returning to previous levels. It is worth noting that in this downward market every now and again there will be a spike in rates but they are few and far between and do not hang around for long. With the Pound being so sensitive from any positive data coming from the US and Eurozone the pound Is near enough certain to keep disappointing euro and dollar buyers.

It is advisable that if you have a requirement in the coming days or weeks to keep an eye out for these spikes to make sure you don’t miss out on a more advantageous rate whilst it is there. One good tool to help you catch these peak rates should you not have be as vigilant is looking at securing a limit order to help you catch these rates before they vanish and eliminate disappointment should you miss out. for more information please contact your account manager here at currency index to discuss this option.

Today is fairly quite in the data sector for both the UK and Eurozone, however the US will be posting retail figures in the afternoon at 12.30pm which is expected to be a positive figure, should that be the case expect Sterling to lose further ground to its competitors. Later in the afternoon The Bank of Canada hold a press conference on their interest rate decision which will be by discussed by their governor Stephen Poloz. Since February the pound has lost over 15 cents on the Loonie expect that to worsen should the BoC hold a bullish stance towards the interest rate. That will then move us on to Thursday where The Bank of England governor Mark Carney will also hold a press conference regarding the interest rate in the UK. This will be a big shaker for the market should the speech be bullish or bearish, if the latter can you afford to take a hit should the pound spiral into decline again?