As Aretha Franklin famously sang "What a difference a day makes" and this was certainly the case for sterling as it suffered is biggest loss against the Greenback in over 3 months.
A busy 24hour period in which we saw some key data releases from the states began yesterday with Non-Farm Employment figures. Although these missed expectations the miss was marginal and therefore had little impact.
The real market mover and the reason behind Cables drop from 1.70 to 1.6866 is courtesy of much better than expected GDP figures for the US as anticipated in Tuesday's post. The US GDP figures showed their economy grew by an impressive 4% in the 2nd quarter of 2014 in sharp contrast to a negative -2.9% retraction in the first quarter. As was well documented in both the media and several of my posts in previous months this was largely down to the harsh winter weather and the government shut down.
To close the week we have three major pieces of data, one from the UK and two from across the pond. First, at 9:30am we have UK manufacturing figures which are expected to be slightly worse than previous, no fireworks expected there then. However, at 1:30pm we have US non-farm employment figures and unemployment figures. With both sets of figures being notoriously difficult to predict any figure either side of expectations can cause some market volatility.
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