A mixed week for sterling saw limited movement for the currency in the first part of the week, before it experienced significant swings against both the euro and US dollar on Thursday following the European Central Bank (ECB)’s interest rate decision.
A brief dip was seen on Tuesday following comments from Bank of England (BoE) Governor Carney regarding our European Union membership referendum, but effects throughout the market were muted. Wednesday saw the release of manufacturing production figures from the UK which revealed an increase of 0.7% throughout the industry in February.
Thursday brought the most significant movement for sterling though, initially strengthening against the euro whilst moving in the opposite direction versus the US dollar as the ECB cut its deposit interest rate to -0.4%. However, these trends were soon reversed, with sterling hitting a fresh three-week high against the US dollar as European Central Bank President Draghi talked down the prospect of further interest rate cuts.
A quiet day for economic data releases today as markets digest the events of yesterday. However, trade balance data from the UK will provide some interest, with a further slip into negative ground expected.
If you are looking to buy or sell sterling, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.