Sterling Remains Rangebound

By Simon Eastman

Thursday was a quiet day for the pound, with no key UK data out and a mixed bag of EU and US results, saw the pound trade in a small range over the day.

Halifax house price data showed prices were down more than expected, down 1.9 percent compared to 0.3 percent, but this isn’t much of a surprise given the sky-high mortgage rates consumers now face. Even a raft of poor low key EU data releases didn’t stop the euro making initial gains against the pound but was halted by lower-than-expected EU GDP which crawled in at 0.1 percent compared to 0.3 percent growth for the quarter. The yearly post wasn’t quite as bad only missing the forecast of 0.6 percent growth by 0.1 percent (at 0.5 percent).

Following this the pound made some gains back, but any rally has been overshadowed by Bank of England chatter that interest rate hikes may be finishing for now at the next meeting later this month, as the Bank take a more “suck it and see” approach going forward, much inline with both the Fed and ECB. Better than expected jobless claims figures from the US helped the dollar make gains against the pound initially but again gains were limited, and we saw the pound claw back to trade within a half cent range over the day.

Overall, Thursday was a non-plus day with little interest in the data releases and little movement to take any real benefit from whether you are buying or selling. Friday may see much of the same as the only release of note is German consumer prices which is released early doors. Following that, its across the pond for Canadian average earnings and employment figures which could cause some activity for any Loonie buyers out there.

Those with a currency purchase to make in the coming weeks may want to consider taking advantage of the rates at present, ahead of any volatility which may occur once the real nuts and bolts releases start coming in the next couple of weeks. These rates are up near the best this year for sterling again most major currencies, so the ship is steady, ahead of entering the choppier data waters of inflation, retail sales and central bank meetings later in the month. Give one of the team a call today for some friendly guidance.