Sterlings slump

Yesterday trading day saw the Pound descend further. Falling by 12% already this year against the Dollar and reaching its lowest level against the Euro since voting to leave the European Union and with the pound suffering from political uncertainty, uncertainty surrounding the future of the UK’s economy, interest rate cuts and extended quantitative easing, sterling future is not looking encouraging. Negative data results for UK manufacturing production and good trade balance earlier this week has meant investors have looked to put their money into other more appealing currencies while the UK and indeed the Bank look to sell its target amount of gilts or government bonds over the next few weeks until October.

Today there is no UK data, so could be a fairly steady day on the market. However, we do have EUR GDP and Industrial Production this morning at 10am then after lunch time the focus turns to the US with Retail Sales and producer price index due at 13:30.

As ever in this current market if you have an upcoming buying requirement do get in touch with one of the team here at Currency Index to discuss your options to secure your currency. Our forward contracts allow you to lock in a rate up to a year ahead – a great tool to consider to protect you in this downward trending market.