Yesterday was a disappointing day for sterling, as it reversed many of the gains it saw on Monday – and fell to the lowest level in a week against the US dollar. The British currency found itself on the back foot from the off, as broad US dollar strength weighed heavily. A larger-than-expected increase in public sector net borrowing, combined with a fifth straight month of falls in UK factory orders saw sterling come under pressure across the board. Confirmation that the Royal Bank of Scotland had pushed back their forecast for a Bank of England (BoE) interest rate hike to August 2016 saw sterling fall further throughout the day.
Today sees attention turn to the Eurozone, with a host of Purchasing Managers’ Index (PMI) data set to be released from European countries. In addition, European Central Bank President Draghi is due to speak during the afternoon, and his comments could result in movement for sterling.
So we should expect a busy day for sterling and if you are looking to buy or sell sterling, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.