020 7898 0500Sterling made gains on the US dollar on Friday, due, in large part, to worse-than-expected data releases from the US. The US Gross Domestic Product (GDP) was forecasted at 2.6% but came out at 1.2%, resulting in a swing of almost a cent. There was also worse-than-expected data from several Eurozone countries, but the euro held firm and after some initial volatility ended the day against sterling at almost where it started.
The spotlight this week is on the Bank of England (BoE)’s meeting on Thursday, with a possible rate cut looming in the distance. Bloomberg has reported a 100% possibility of a cut, but predictions are not always accurate, so there is still much uncertainty over whether the central bank will cut UK interest rates.
Meanwhile, today will see the release of manufacturing Purchasing Managers’ Index (PMI) data from the UK – a leading indicator of economic health and a key element in analysing the fallout from the Brexit. This is forecast to be unchanged from last month, at 49.1. Any deviations from expectations could see sterling movement.
If you are looking to buy or sell sterling, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.
