Sterling was a standout performer yesterday, making gains against most currencies. This performance was surprisingly not due to physical data, but from encouragement received from the International Monetary Fund (IMF). The IMF increased its UK growth forecast more than it did for any of the other G7 nations, causing sterling to benefit, notably reaching its highest level since January 2013 against the euro.
Today is possibly even more important for sterling, as we await the Monetary Policy Committee (MPC)’s votes on monetary policy and interest rates. Significant labour market figures are also due, in the form of the unemployment rate and claimant count change, with the market holding its breath for unemployment levels nearing the threshold for when the MPC supposedly starts raising interest rates. This will be of particular interest to businesses making or receiving international payments as it could well be a catalyst for either further sterling appreciation or disappointment and sterling weakening from its current highs.
Thinking of buying or selling sterling? Call your trader now for the latest sterling rates, as we expect to see some movement in exchange rates following the various releases out today.