Currency Note Sterling

Sterling enjoys a strong end to 2013; but stumbles in 2014

By Smart Currency January 3rd, 2014

Sterling had a mixed week as we crossed in to the new year, with strong upward movements driven by speculation over upcoming data released over the next few weeks. With the decreased liquidity over the holiday period, sterling reached fresh two and a half year highs against the US dollar, even managing to briefly break the 1.66 barrier, while also hitting a one month high against the euro. However, results from the manufacturing industry in the UK yesterday dampened this enthusiasm somewhat, as the purchasing managers index from the country unexpectedly slowed at the end of 2013. This, coupled with speculation over the Bank of England holding interest rates low while the US continues to taper saw sterling fall by the largest amount in twelve weeks against the dollar, whilst also falling against the euro. Today, the construction sector brings its Purchasing Managers Index (PMI) is released, with the new lending to individuals figure providing back up to this. Call your trader now for the latest sterling rates, in a see saw week for the currency.