020 7898 0500With no significant data released from the UK yesterday, sterling’s fate was left in the hands of its two main trading counterparties, especially those of the US, as the Federal Reserve were holding their monthly meeting and the subsequent press announcement is always very closely scrutinized for any “helpful” comments.
This time around it was what was missing from the statement which caused sterling to gain over a cent against the euro and lose a cent against the US dollar – i.e. there was no mention of worries over the world economy and its possible effect on the US economy – which has increased the likelihood of the US increasing their interest rates in December.
The UK currency will be in for a slightly busier morning today as the markets continue to analyse last night’s press announcement and also on the data front, with the focus being month-on-month net lending figures. The trend over the past few months has been positive and this is set to continue with an expected figure of £4.4 billion.
