Sterling continues to hold close to 12 month highs against the US dollar and the euro. Yesterday we had the release of UK growth figures for the final quarter of 2013. With the UK preliminary GDP figure coming out at the lower end of expectations at 0.7%, sterling weakened slightly before recovering some ground throughout the afternoon as investors digested the result, which showed the first year round expansion since 2007.
The main event from the UK today will be a speech from Bank of England (BoE) Governor Mark Carney, whose words had a significant impact on sterling markets at the end of last week. As such, investors will be keen to hear what he has to say and will dissect his words for any clues as to a longer-term view on sterling. The speech will also be of interest to businesses, particularly those making international money transfers, as his speech last week saw sterling weaken markedly.
At the moment sterling is holding its own but there doesn’t seem any obvious catalyst or energy to continue this trend in the short term. As we know this can soon change so please get in touch with your trader now for the latest rates, after yesterday’s positive data may well boost confidence going forward.