Currency Note Sterling

Sterling begins 2016 on a low, thanks to dollar strength

By Ricky Bean January 4th, 2016

A tough week for sterling saw it finish the year at a fresh eight-month low against the US dollar. With little economic data released following the Boxing Day Bank Holiday, market movement was largely dominated by existing investor sentiment. Following the US Federal Reserve’s decision earlier in the month to raise interest rates for the first time since 2006, sterling has fallen sharply against the US dollar. Although sterling’s performance against the euro was more positive, it still fell throughout the week against the single currency.

The Purchasing Managers’ Index data from the manufacturing, construction and services industries is expected this week; markets will be eager to analyse the results to gain any clues as to the strength of the UK economy.

Sterling is still suffering – contact your trader today for the latest rates and to discuss a currency strategy to take this into account.