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False dawn for a Sterling recovery? (Tom Holian)
The Pound has ended the week negatively against both the US Dollar and the Euro after some lower than expected UK economic data on Friday.
UK Industrial & Manufacturing production data showed a fall for March and this led to the Pound falling against all major currencies.
The Trade Balance data for the UK showed that the deficit on trade in goods and services extended to £3.7 billion in February from a revised deficit of £3.0 billion in January.
Following this the NIESR GDP estimate for the last three months to March showed that the economy grew at a softer pace coming out at 0.5%.
Although this is not the official data the figures are usually very accurate showing that the UK is not growing at the pace expected.
In the world’s largest economy US Non-Farm payroll data showed only 98,000 new jobs created compared to the estimate of 200,000 but although this was a lot lower than expected the US Dollar strengthened as US unemployment data showed its lowest level in years.
US average earnings were also up this led to Dollar strength vs the Pound sending GBPUSD rates down into the 1.23 level again after hitting 1.25 earlier this week.
The next day for volatility for Sterling will come on Tuesday morning with the latest release of UK inflation data.
Inflation is a key factor in determining monetary policy so if we see higher than expected inflation data this could see a small fight back for the Pound.
If you would like further information and would like to be kept up to date with what is happening to Sterling exchange rates then feel free to contact me directly.
Having worked in the foreign exchange market since 2003 I am confident not only of being able to save you money when buying or selling currency but also help you with the timing.
Email me with your enquiry and I look forward to hearing from you.
Tom Holian [email protected]
Source: http://www.poundsterlingforecast.com/2017/04/08/false-dawn-for-a-sterling-recovery-tom-holian/
