Turbulent week for the Pound
22 February, 2013
This week has been a busy one in the way of data releases with three of the major financial bodies meeting – the Bank of England, the Fed and the European Central Bank. Consequently it has been a fairly turbulent week – in particular Wednesday following the BoE meeting which saw the pound lose a cent in just almost 10 minutes against the Euro, and saw it drop to 2.5 year lows against the USD. It certainly seems that at the moment the sentiment that the pound is a poor bet continues, and without doubt the Euro and USD do have momentum over the currently struggling pound. Despite the earlier losses the pound made this week we did see a small degree of recovery as yesterday it regained the ground it lost against the single currency, clawing back much of the previous loss.
However early this morning European GDP was announced as being down on previous 0.2 to -0.6% and despite this being a negative/ bearish result the Euro has continued its 2013 onslaught and taken back half a cent in the past few hours. Much of this may have been priced in prior to GDP as although negative it was forecasted, but what is apparent it would seem is that the balance of strength at present is still with the single currency.
Interestingly and certainly no help for the pound, across the pond a large amount of market confidence is returning to the USD, which prior to last years fears over a financial crisis was always regarded as a safe bet and a safe haven currency.
Today sees little in the way of major releases for the Pound, Euro or Dollar, but albeit a quiet day the markets will no doubt be continuing to react to what has been a busy week in the major pairings with many investors wondering when the dust will begin to settle.
If you have any upcoming transfers make sure you speak to your Currency Index to make sure you are kept well informed of any potential movements that might have an impact on your transfer, and to stay ahead of the markets.
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