Currency Note Sterling

Sterling up against the euro but down against the dollar

By Callum Holmes September 25th, 2014

A mixed day for sterling saw it make moderate gains against the euro but fall away against the US dollar throughout the day. Sterling started the day in positive spirits following comments from a member of the US Federal Open Market Committee (FOMC) overnight warning against a premature rate hike in the states. Further support was found against the euro as the Ifo German Business Climate survey posted its worst result in 15 months. With the threat of stagnation in Europe’s largest economy, and the European Central Bank mulling over further monetary stimulus in the Eurozone, sterling pushed close to a 5-year high against the euro. in contrast to this, sterling fell away against the US dollar throughout the day as the number of new home sales in the US grew by 18% throughout August – its largest monthly rise since January 1992. This saw the dollar strengthen across the board, and push sterling further from its post-referendum highs.

Today’s main event sees Bank of England (BoE) Governor Mark Carney speaking during the afternoon. Following a quiet week for sterling, investors will be keen to hear Carney’s views in his first speech following the Scottish independence vote.