Yesterday Durable Goods figures were announced from the US economy. These are a measure of long term purchases such as new planes and large volumes of cars. Essentially it shows how confident businesses are about where the economy will be in a few years down the line, and whether there will be high demand for products. The figures for this were staggeringly lower than expected. This is a surprising lack of confidence in an economy viewed by the markets as the Golden light of Western recovery.
So this kind of hesitant market is one of the reasons why Sterling is sliding now, more than a month away from the election. There is a lack of confidence in what form of government will emerge, and what our relationship with the Eurozone will evolve into as a result.
Today retail figures come out for the UK economy. Over the past three months this particular data release has had a significant strengthening effect for Sterling. Those looking to buy Euros while rates are still so close to a 7 year high should call into the trading floor today on 01494 787478 and ask for Joshua. [email protected]