Currency Note Sterling

Sterling under pressure

By Ricky Bean October 11th, 2013

Sterling has clearly lost its lustre, losing further ground this week. The week did start well for sterling after a report released showed an increase in optimism over the UK’s financial sector in the third quarter, pushing the currency higher. However on Wednesday we had the release of the monthly manufacturing production data and the trade balance figures which were both worse than expected, as a result sterling tumbled against all 16 of its major partners, notably dropping below the 1.60 mark against the US dollar. On a more positive note, the IMF upgraded the UK’s growth forecasts (whilst downgrading the global forecast in general) – although these forecasts should be taken with a pinch of salt. Yesterday offered little variance for the pound, as the Bank of England voted to keep the official bank rate and current levels of quantitative easing on hold. Today closes out the week tamely, with a distinct lack of significant data which should lead to less volatility, that being said – it is the unexpected that drives significant movements in the market. Get in touch with your trader now for the latest on sterling, at the end of a disappointing week.