A reversal in fortunes on Monday saw sterling fall away from last week’s multi-year highs against the euro. Probably to be expected given the gains sterling made at the end of last week. With little economic news released throughout the day, market focus was fixed on the ECB’s expected announcement of a €550 billion bond purchase program on Thursday. With investors nervous over the outcome of this announcement, the euro was able to strengthen across the board. In comparison to this, sterling traded within a narrow range against the US dollar, finishing the day in much the same position as it started.
It is another quiet day for sterling today as the focus remains with the Eurozone, although events elsewhere have the potential to affect sterling’s performance. German economic sentiment data promises to provide some insight into investor confidence over the next 6 months.
Smart Currency stance on Swiss National Bank changes – There has been news in the press recently that the Swiss National Bank (SNB)’s abolishment of its euro peg last year has caused difficulties for some foreign exchange brokers. We assure you that Smart Currency is not affected by these changes. We take a non-speculative view with currency trading and have a broadly based spread of clients, which means that we are not at risk from these events. To learn more about what happened, read Smart Currency CEO Charles Purdy’s blog on Forbes.com.