Sterling has already seen a large swing in its value against the single currency over the last 3 days. Levels have climbed by almost 2 cents before falling a cent in yesterday’s trading. These loses were seen as the central bank in Europe released forecasts for growth which were dramatically cut. This lower growth has an impact on the demand for the UK’s exports, over 60% of which go to Europe. We also saw US data miss expectation, their exports fell dramatically resulting in money flowing from the green back to the single currency.
Moving forward watch out for the interest rate decision both in the UK and Europe tomorrow. This will be rather interesting, especially in Europe as the head of the bank trying to fight falling inflation. It is also their first opportunity to really comment on the US tapering coming to an end which could throw up some surprises. Contact us here for a full break-down of the data ahead and the expectation on the currency market. Call on the normal number found here or email me directly at [email protected]