Sterling has had a steady to good week, with impressive manufacturing and production figures driving it to significantly higher levels than both the US dollar and the euro. However the gains against the euro have been shown to be short lived. After a slow start to the week where a lack of data saw little market movement, Tuesday saw the release of manufacturing data, where 0.9% growth throughout February saw sterling rise to its highest levels against the euro and dollar since early March. Trading on Wednesday was fairly flat until the release of minutes from the latest US Federal Open Market Committee Meeting in the evening. This saw sterling appreciate by over a cent against the US dollar, almost reaching a 5-year high. Performance against the euro was less inspiring. Thursday also saw confirmation from the Bank of England that monetary policy would be left unchanged, with interest rates remain at 0.5% going forward.
Today’s most important data release is from the US this afternoon, in terms of consumer inflation figure. A strong result could see the dollar rally, whilst poor data may see sterling break the 5-year high it came close to yesterday.
Movements in exchange rates this week highlight the need to be regular contact with your trader as the movements can be short lived and require immediate action. Therefore if you are looking to buy or sell sterling, please contact your trader for live rates and updates, as well as for currency-buying solutions.