020 7898 0500The disappointing start to the week for sterling was soon forgotten on Thursday, as sterling soared to a one month high against the US dollar. With no significant economic data released from the UK at the start of the week, a re-emergence of fears surrounding a potential “Brexit” from the European Union saw sterling fall significantly across the board. This culminated in sterling hitting two-week lows against both the euro and US dollar on Wednesday – despite better-than-expected average earnings data from the UK, with a growth of 2.1% beating the 2.0% forecast.
However, sterling was then able to rebound over 1.5% against the US dollar throughout Wednesday evening as the US Federal Reserve left interest rates unchanged and reduced their US growth forecasts. The British currency then found further support against the euro when the Bank of England (BOE) stated on Thursday that they see interest rates increasing over the forecast period – recovering much of the ground lost earlier in the week.
A quiet day from the UK lies ahead, with the BoE quarterly bulletin providing the only point of interest. However, with this following swift on the heels of yesterday’s minutes, this document is unlikely to contain many surprises.
If you are looking to buy or sell sterling, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.
