Currency Note Sterling

Sterling pushes back against the US dollar thanks to positive data

By Ricky Bean February 4th, 2016

Wednesday was a mixed bag for the sterling. Against the US dollar, we saw the pound strengthen by just over one percent on the back of some slightly better than expected UK Services Purchasing Managers’ Index (PMI) data and disappointing US data releases that fuelled rumours that the Federal Reserve would now hold back any interest rate rises.

Against the euro, we also saw sterling achieve strong gains during the early part of the day. These gains were reversed during the afternoon once US markets opened, despite little important Eurozone data.

Today we have the release of this week’s key data for sterling, with the Bank Of England’s (BoE) Inflation report and Monetary Policy rate decision released at midday, followed by Governor Mark Carney’s speech on this decision. We are expecting only one member of the Monetary Policy Committee’s members to vote in favour of a rate hike – so if another member votes in favour or everyone votes against, we should see some movement for sterling across all currencies.