The pound fell yesterday against most majors as some of the recent fear surrounding the Euro eased slightly following the ECB rate decision and press conference. There had been a lot of fear that the ECB might be much more drastic than the measures announced, so investors gradually moved back into the single currency at sterling’s expense.
With some of the sheen coming off the pound in recent days, with the UK losing the AAA rating from Moodys and a drop in UK Manufacturing PMI, it suggests not all areas of the economy and growth are firing properly. A big increase in the housing market has slowed lately, and there have been warnings over borrowing levels versus growth forecasts. This morning’s Services PMI will be very interesting as a wobble here could really shake the pound, but a strong figure may help support the pound.
Today we also have US Non Farm Payroll Data so could have an influence on market expectations for US monetary policy. A good jobs number would suggest the Fed are getting a little closer to an interest rate hike, but a poor showing could weaken the USD as markets push back the prospect of a move stateside.
If you need to make a currency transfer and want to get the best exchange rate then feel free to email Colm at [email protected] and I would be happy to explain how our services work.