Although it looks as if sterling has moved sideways this week, there were moments where it had made reasonable gains which have subsequently been given back, which highlights the importance of keeping in touch with your trader so as to take advantage of those opportunities.
Sterling started the week quietly, with little major data released on Monday. Tuesday saw sterling struggle to make ground, with Bank of England (BoE) Governor Mark Carney assuring investors that recent discussions had centred on the pace and timing of an eventual rate hike. Sterling gained value against the US dollar following the hearing, but continued to struggle against a euro supported by strong data from the 18-country bloc. Thursday saw sterling make broad gains across the board, with general market sentiment pointing to a late 2015 interest rate rise having already been priced into the markets. Sterling rose to a two-week high against the dollar on the back of this, but fell again on Thursday with lower trade volumes due to the Thanksgiving holiday in America, which harmed sterling performance.
Today looks to be relatively quiet for sterling based on UK data releases with only housing inflation data released in the morning but we could see some reaction to the Eurozone inflation data due out today.