Good afternoon,
After losing over a cent against the dollar since Monday, Sterling managed to rally against a basket of currencies during trading today with GBP/USD exchange rates climbing back over $1.67. When I came into the office this morning Cable was sitting just above $1.6655 but after more positive data for the UK the pound managed to climb and reach a high of $1.6750 for second time this week.
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Since my last post Sterling had lost a bit of ground against the dollar after UK construction figures, which were released on Tuesday, had shown the sector had not grown as quickly as everyone had hoped. The data resulted in GBP/USD rates dropping back to a low of $1.6641 (the lowest we have seen the cross for nearly a week).
It did not take long for the pound to recover though as today's service sector figures (which are a leading indicator into how the UK economy is performing) beat analyst expectations to once again show the UK recovery is firmly taking hold.
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Todays movements mean we have now seen a 0.65% swing in GBP/USD exchange rates over the past three days and I would expect to see further movements for the rest of the week. Tomorrow sees the Bank of England meeting for their monthly interest rate decision, although it is highly unlikely we will see a increase in rates, we could still see some movement in the FX markets as investors try to predict when we will actually see a rise.
On Friday we will also see the latest U.S. job numbers which will show us how many jobs were created in February. This piece of data is notorious for causing major movements in exchange rates and I would expect nothing else this time round when the results are published on Friday afternoon.
I will of course keep you updated with how the next couple of days pan out, in the meantime, if you have a requirement to buy or sell dollars in the coming months there are a couple of ways to contact me to ensure you are making the most from your currency transfer.
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