Sterling still strong but may not be for long
10 April, 2018
The week started quietly yesterday with little data out across the major economic zones and as such little in the way of market movement for any of the major currencies. The market is quite stable as a result, with GBPEUR and GBPUSD both very rangebound just below recent highs.
Again, there is not any critical data out this morning, with just a couple of speeches from central bankers this morning from US and UK, and some minor US data this afternoon. So, we would probably expect another quiet day on the markets. With a lack of data from the UK, Sterling continues to trade on the more positive trends we have seen over the last few days for now.
Tomorrow things get a lot busier, with a lot of critical UK data being released – we start off with UK industrial & manufacturing production figures, followed by UK trade balance, as well as a UK GDP estimate. Sterling’s strength could potentially weaken depending on which way the data goes, with many of the data releases expected to be negative versus previous readings.
As such, with the use of a forward contract, you can lock in your rate for your future currency requirement, with just 10 percent of the sterling equivalent today. This can avoid the risk if the rate falls away.
To find out more, speak to us today.
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