Sunday, 30 August 2015

Will today’s data release enable sterling to regain its footing in the market?

Widespread turmoil in the financial markets this week has seen mixed fortunes for sterling. With the so called “Great Fall of China” on Monday preceding a day of losses throughout European and US stocks, sterling fell to a two-month low against the euro on the back of short-term profit taking by investors. On the flip side, the British currency also rose to a one-month high against the US dollar, although it was unable to maintain these levels as the week progressed
With no economic data released from the UK throughout the week, sterling found itself under pressure against a resurgent US dollar as equities staged a recovery worldwide. Following Monday’s sharp fall against the euro, the British currency was able to pushed back marginally throughout the week, and the single currency was unable to hold onto its more advantageous position.
Today sees the first major data release from the UK of the week. Following a positive economic growth estimate earlier in the year, the second estimate of gross domestic product (GDP) is forecast to remain stable at 0.7% growth.
If you are looking to buy or sell sterling, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.

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