020 7898 0500As we move towards the festive period, liquidity, the volume of trade taking place, has become the driver of much market action; this can mean that rate spikes are on the cards.
Sterling declined by around 0.6% against the euro on Monday afternoon, most likely a response to the Confederation of British Industry (CBI) Distributive Trade Survey; an indicator of short-term trends in the UK retail and wholesale distribution sector. The survey was expected to generate a reading of 21, but fell short at 19, but positive in comparison to a figure of 7 in November, and while the fundamentals still look largely healthy for customers, consumer confidence has come off since mid-year peak levels.
Tuesday sees two major data releases; the GfK Group Consumer Confidence (a leading index measuring consumer confidence in economic activity) and the Public Sector Net Borrowing data (capturing the amount of new debt help by UK governments). While the Consumer Confidence figure is expected to remain stable, Net Borrowing is anticipated to increase from £7.47 billion in October 2015 to £11.00 billion – a negative indicator for both sterling and the UK economy.
Sterling is seeing significant movement in response to economic and market events. Contact your trader today for live rates, the latest news and to plan your currency strategy.
