Even though the UK manufacturing sector posted a lacklustre performance throughout February, contracting 0.5% against an expected rise of 0.2%, sterling continued to strengthen against the euro continuously hitting levels last seen in 2007. However combined with recent positive US data, sterling did fall further against the US dollar throughout the afternoon, with investors anticipating that the Federal Reserve would signal at their meeting next week that an interest rate hike is close at hand.
With no further signs of a deal being struck over the Greek debt problem, and comments from a member of the European Central Bank that showed concern over the effectiveness of their recently adopted quantitative easing program, the focus today will shift to the US, where retail sales data for February will be eagerly awaited by investors. The markets will also be listening closely for any indications of future UK monetary policy.
If you are looking to sell sterling, its strength against the euro could act in your favour. But this can change, quickly! Contact your trader today for the latest rates and to discuss the right currency purchasing strategy.