By Simon Eastman
Sterling was in for another rocky ride on Thursday as the ONS released GDP figures, which posted lower than the hoped 1 percent growth, coming in at 0.8 percent. As well as the key growth number, industrial and manufacturing production figures also missed expectations. Both were predicted to show low readings but on the positive side showing growth in the sectors, whereas both came in with a contraction on 0.2 percent.
The above readings just added to the pound’s woes, and with stocks and crypto markets all slumping, investors again took flight to the safe haven US dollar, push cable to fresh lows. The only upside was the euros subsequent weakness as the dollar benefitted, the euro didn’t, with sterling taking advantage by a cent and a half by the UK close.
US produce price index figures halted the dollars gains though, as they came in under the predicted levels, while those claiming for jobseekers help, also rose more than markets expected. The result meant cable ended the day at key support levels, but with the ongoing crisis in Ukraine and the continued slide in stocks, the general feeling is cable could well have further to go.
If you have a USD requirement, it would be prudent to speak to one of the team sooner rather than later to discuss the options available to you.
As the week wraps up, it’s a quiet day for UK and EU ecostats, with just a few low-key releases and a speech by a European Central banker first thing and another one as markets round up at 4pm.At lunch the US release import and export indices, culminating with the Michigan consumer sentiment index at 2pm.