Sterling Under Pressure Following Poor Showing on Super Thursday’ (Matthew Vassallo)

Sterling Under Pressure Following Poor Showing on Super Thursday’ (Matthew Vassallo)
May 11
16:52 2017

Sterling has come under pressure during Thursday’s trading, following some poor UK economic data releases.

Today was dubbed ‘Super Thursday’ by investors, due to host of key releases for the UK economy. The Pound was immediately on the back foot this morning though, following poor Manufacturing & Industrial Production figures. These came out under market expectation and the Pound started to lose value against the CHF.

Despite inflation data in Switzerland coming out lower than predicted the CHF gained value, as investors sold off Sterling positions ahead of the Bank of England’s (BoE) interest rate decision at Midday.

GBP/CHF had been trading above 1.30, with the Pound finally gaining a foothold over recent weeks. However, the CHF fought back and with the pair falling to a low of 1.2955 today, will Sterling now struggle to move back above the 1.30 threshold?

The Pound’s slide was not assisted following the BoE’s rate decision, which despite being kept on hold as priced in by the markets, did little to help the Pound recover its early morning losses.  The vote of 7-1 against a rate hike meant that the status quo from last month was kept, with little risk appetite for investors hoping to see an indication of a future rise.

BoE governor Mark Carney also gave a subsequent press conference and in it he was fairly dovish about the UK economy’s growth in the months ahead. He predicted a tough year for UK households as inflation rises faster than predicted and he also suggested wages would fall.

Couple this negative tone with some worrying reports recently, in regards to the UK’s Brexit negotiations and how tough they are likely to be, are you prepared to risk losing the gains made for Sterling over the past month?

If you have an upcoming GBP or EUR currency transfer and would like to be kept up to date with all the latest market movements, or simply wish to compare our award-winning exchange rates with your current provider, then please feel free to contact me on 0044 1494 787 478 and ask one of the team for Matt.

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Matt Vassallo

Matt Vassallo

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