A slow start to the week saw sterling fall close to record lows, before staging a strong recovery thanks to positive economic data.
Following a poor recent run across the board, sterling continued this trend at the start of the week, falling to a three-year low against the euro on Tuesday – and almost breaking through the recent 1985 low against the US dollar. Better-than-expected inflation data released on Tuesday allowed sterling to begin its recovery from these lows, although Wednesday’s mixed labour data arrested this positive movement. Yesterday, however, brought further strength for the currency, with retail sales jumping by 1.4% throughout the past month – a significant improvement on the consensus forecast of 0.1%. Sterling subsequently surged to reach the highest level in almost 2 weeks against the US dollar.
Public Sector Net Borrowing figurers are due for release this morning, but no other significant economic data is due to be released from the UK.
If you are looking to buy or sell sterling, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.