Currency Note Sterling

Sterling strong against the euro and US dollar

By Smart Currency November 22nd, 2013

Sterling has had a volatile week but is ending it on a positive note as it gains ground across the board. There were significant movements in both directions either side of the main UK event of the week, the release of the Bank of England’s meeting minutes. Apprehension and speculation beforehand caused sterling to fall against all of its major partners, however, the minutes revealed the central bank’s views on the unemployment rate which helped reverse this trend. The reconfirmation of the belief that the unemployment rate will reach the central banks 7% target earlier than first thought increased speculation that we could see an interest rate hike ahead of schedule. As a result, sterling strengthened against the US dollar pushing up close to the 1.62 level, while the ECB rumours also helped sterling hit the 1.20 level against the euro. Yesterday we saw improved industrial orders add to the currency’s positivity, as the last data release of the week. With nothing left today from the UK, a quiet day could be expected to round off an overall positive week. However news from elsewhere may well drive sterling so please call your trader now for the latest rates.