Since my last post Sterling has made some decent strides against the U.S dollar, over the weekend the GBP/USD cross reached its highest level for over two years as exchange rates pushed towards $1.6450.
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It looked as though rates may push even higher this morning, once again the UK underlined its status as the best performing Western economy in 2013, with the UK Manufacturing sector producing its strongest performance for almost 3 years.
We did initially see a brief rise after the data release (as the graph above shows) but Sterling was unable to hold onto the gains and started to run out of steam by mid-morning. At the time of writing exchange rates had fallen by nearly 0.5% and at its lowest left cable trading at $1.6346.
So why did rates starts to fall?
Todays move was not really down to Sterling weakness but dollar strength. Following a relatively quite few days in the States, largely due to Thanksgiving, the U.S. had a number of important data releases this afternoon and they did not disappoint.
The U.S. also released its latest Manufacturing numbers for November and just like the UK, had better than expected results. The Final Manufacturing PMI came in at 54.7it highest level for over 18 months, a number over 50 indicates growth in the sector.
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What could move rates this week?
It could be a very volatile week for the GBP/USD cross with a number of highly important data releases due over the next few days.
From the UK we will see the latest retail sales numbers, Construction PMI and Services PMI. We will also get the latest figures from the Bank of England regarding interest rates and quantitative easing.
The U.S. will release their latest unemployment numbers, non-manufacturing PMI, preliminary GDP figures and on Friday the eagerly anticipated non-farm job numbers which normally cause some major swings in the FX market.
I will keep you updated over the course of the week about how the above moves exchanges rates but in the meantime if you are thinking of buying or selling dollars in the coming weeks and want to know how to make the most from your transfer, use the link below to complete the contact form all call me directly on 0044 (0) 1442 892 065.
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