Sterling Pushes Fresh Lows

Last week we saw further turmoil on the markets as sterling pushes fresh lows, despite a few decent data releases as investor sentiment toward the pound is still poor.

Despite seeing some of the best unemployment levels in decades and better than expected retail sales the pound struggled to make gains, finding the recent resistance floor of 1.10 now a strong point of resistance to the upside. The pound/euro exchange rate tested this level a couple of times but couldn’t break higher, in testament to the change of pace for the pairing. With this level now the ceiling of resistance, it seems the only longer term direction is a move lower and with just a couple of key UK data releases left for this month, we could see a push lower sooner rather than later.

Currency Data For The Week Ahead

Currency news for the week ahead is quiet for the UK although we do have an inflation hearing and GDP reading on Wednesday and Thursday respectively, which could throw up further sterling volatility. Elsewhere we have plenty for investors to go off with the main highlights outlined below.

Tuesday – German ZEW economic sentiment, Canadian retail sales

Wednesday – US, EU & German manufacturing and services PMI, UK inflation report, New Zealand trade balance

Thursday – UK GDP, US new home sales, EU consumer confidence

Friday – German GDP, ECB President Draghi speech, US durable goods order

Not a great deal out, but some key releases and much from German and the EU which if better than expected could bolster the already strong euro and send the pound into further downside. To maximise your currency exchange rate, ensure to keep in close contact with Currency Index, give one of the team a call today for some friendly guidance.