Currency Note Sterling

Mixed day for sterling

By Callum Holmes October 27th, 2015

Sterling recovered from a poor start to the day on Monday to reverse a recent string of losses against the US dollar. Comments made by Bank of England (BoE) Governor Mark Carney over the weekend suggested that 4% of UK mortgage holders could be at risk should the BoE raise interest rates as expected, and that there was no certainty rates would increase. This saw sterling struggle throughout morning trading, falling from the recent two-month high reached against the euro. Sterling did however gain ground against the US dollar throughout the afternoon as analysts at Scotiabank warned that the global slowdown in inflation could affect the Federal Reserve’s decision to raise interest rates in the short term.

Today sees the release of quarterly economic growth data from the UK. Following last week’s better-than-expected retail sales data, sterling investors will be hoping for further positive news today to boost sterling although expectations are for growth to be slightly less than the previous quarter.