Currency Note Sterling

Sterling enjoys a good week

By Smart Currency December 20th, 2013

Sterling has had a good week, thanks to further positive economic data and positive words from the Bank of England. Early week losses were seen in anticipation of US events, alongside worse than expected inflation figures being released. However, this negative sentiment was reversed thanks to the improved unemployment rate released on Wednesday. The resulting figure fell to 7.4%, the lowest rate of unemployment since 2009, thus creeping closer to the BoE’s target of 7% which made investors more optimistic with regards to future interest rate hikes happening sooner than forecast. Sterling then pushed even higher, hitting fresh two and a half year highs against the US dollar following the tentative words the Federal Reserve made when cutting back their quantitative easing programme. Yesterday, retail sales figures from the UK showed an improved figure, as was expected, and continued the recent good form from sterling. Today the current account figure is the main release, with supporting roles coming from the final GDP figure and the public sector net borrowing requirement. Call your trader now for the latest sterling rates, after another strong week held the currency at good levels.