A week of mixed fortunes has seen sterling reach fresh multi-year highs against the euro, while slipping to fresh lows against the US dollar, the lowest since 2013. With little economic data of note released from the UK this week, sterling has largely drifted in response to news from elsewhere. Divergences in monetary policy between central banks has been a key driver, with the US Federal Reserve gearing up to raise interest rates well before those in the UK or the Eurozone. Despite US retail sales contracting throughout February, another fall in unemployment saw the US dollar continue to improve throughout Thursday.
Sterling pushed ever higher against the euro at the start of the week, as concern heightened over upcoming developments over the Greek debt crisis. The euro did see some recovery on Thursday however, with a bout of profit taking helping the single currency to strengthen across the board.
Today’s focus again turns to the US, where the Producer Price and preliminary University of Michigan (UoM) Consumer Sentiment indices will provide the main points of interest.
If you are looking to sell sterling, its current strength against the euro could be good news! But markets are moving rapidly in these uncertain times. Contact your trader for the latest rates and to find the right currency purchasing strategy.