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Sterling drops against the euro and US dollar

By Smart Currency August 12th, 2016

Sterling had a poor week, continuing to weaken against its major trading partners following the Bank of England’s interest rate cut last week and ongoing Brexit-related uncertainty. Weaker than expected data from the UK did little to help matters with Manufacturing production figures released on Tuesday at -0.3%, significantly short of the expected 0%; moreover, the Goods Trade Balance came out a long way short of its expected figure.

Yesterday, French final Consumer Price Index (CPI) figures –a measure of inflation – reached the expected figure of -0.4%, which saw sterling push lower still against the euro before returning recovering slightly towards the end of the day.

Friday sees no key data releases for the UK economy; but, experience tells us that sterling is still open to movement due to events elsewhere.

If you are looking to buy or sell sterling, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.