This has been a largely uneventful week for sterling, with the pound trading within narrow boundaries against its major trading partners.
A quiet start to the week saw sterling fall to a three-week low against the US dollar whilst also losing ground versus the euro. Tuesday’s trade balance data spurred a slight recovery for sterling as the deficit narrowed to £11.2 billion. Any momentum was lost on Wednesday, however, as manufacturing production growth of 0.1% missed the expected growth of 0.4%. Although all of the previous day’s gains were lost following this data release, the market reaction was muted due to the previous week’s poor growth data from the manufacturing industry.
Thursday saw the Bank of England (BoE) highlight yet again the risks should the UK leave the Eurozone; however, markets reacted more positively to the rise in inflation forecasts from the BoE, which saw sterling rise to the highest levels of the week against both the euro and US dollar before losing some ground later in the day.
If you are looking to buy or sell sterling, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.