Another mixed day for sterling ended with gains against both the euro and US dollar. Similar to the pattern 24 hours previously, there was strong support for sterling as the European markets opened, driving it up against the US dollar back towards the five-year highs recently seen. Weaker-than-expected growth data showed that the British economy had grown by 0.8% over the past quarter, below the 0.9% forecast level. Despite this data missing expectations, continuing growth in the economy, alongside disappointing inflation data from Germany saw sterling recover throughout the day to finish in an improved position against both the US dollar and euro.
Little key data out of the UK today so sterling will be influenced by data releases from elsewhere. From the Eurozone this morning we have inflation data released which will be very closely watched following the disappointing figures from Germany yesterday, the Eurozone’s largest economy. From the US we have the release of important employment data and the latest Federal Reserve meeting which are likely to be influential plus first quarter US growth figures.
Looking to buy or sell sterling? Contact your trader now for live rates, news and currency-purchasing strategies.