Better-than-expected retail sales data from the UK gave sterling an early boost on Thursday, as the currency rose to a one-month high against the euro. Following a relatively quiet day in terms of data released on Wednesday, news that UK retail sales figures had increased by 1.9% throughout September saw sterling move higher across the board throughout the morning. With the slew of disappointing recent UK economic data, investors took this news in a positive light.
Sterling was then able to push higher against the euro, as European Central Bank President Draghi stated that policy makers had discussed introducing additional monetary stimulus. With a deposit rate cut also on the cards, sterling surged almost two cents higher against the euro throughout the afternoon. However, widespread euro weakness also led to sterling falling slightly against the US dollar, as investors sought the relative safety provided by the dollar.
A quiet day lies ahead for sterling, with no significant news expected from the UK. Attention will turn instead to Europe, where French and German manufacturing growth figures will provide insight into the economic recovery in the Eurozone’s two largest economies.
If you are looking to buy or sell sterling, now is a good time to contact your trader to make sure you have the latest rates, news and can discuss suitable currency-purchasing strategies.