By Simon Eastman
Yesterday we saw the pound lose some of the gains we had been enjoying the past week, as US data came out more favourably.
Thursday started with a raft of UK data releases, including trade balance, business investment, manufacturing and industrial production and GDP. With a mixed bag of results, the pound seemed to suffer against most major currencies as trade balance and manufacturing production missing the expectations by large margins and GDP coming out as expected.
Helping sterling/euro to not freefall was the EU industrial production figure which just missed out on the forecasts, although following the actual GDP figure, the UK also saw the NIESR release their estimate, which just 3.9 percent, compared to 4.4 percent expected.
The pound continued its downward trajectory over the afternoons trade as markets focus shifted across the pond to a raft of US data releases including inflation and jobless claims. Both these key releases showed better than expected results, giving the US dollar further strength, and taking the euro with it against the pound.
As the week concludes, it’s a quiet for data releases, with just the key US Michigan consumer sentiment index this afternoon. Given yesterdays result and reaction for the pound, anyone with a currency purchase to make, might be prudent to speak to one of the team this morning in case the slide continues across the day. We have a range of contract types available to help with your requirements, so call today for some friendly guidance from the team.