Sterling exchange rates suffered a setback during Monday’s trading session, as the news of Iain Duncan-Smith’s resignation along with profit taking dragged Sterling down against both the Euro and US Dollar respectively.
Economic news releases have been few and far between today, and this has resulted in thin daily trading ranges for both GBPEUR and GBPUSD, and I think that after last week’s bullish run for the Pound, today we have seen its price slowly drop as profit takers book their profits, and this is nothing to be alarmed about for Sterling sellers still looking to make their conversions at the top end of the current 1.26 – 1.30 trading range.
Sterling had previously benefited from comments by Bank of England Governor Mark Carney suggesting that rates are more likely to be increased than cut, and also the Fed’s decision not to increase interest rates until later this year which prompted a number of investors to move funds into GBP amongst other currencies, boosting its value.
I’m not expecting today’s lack of movement within exchange rates to pick up much this week unless we have another popular media figure, such as the likes of Boris Johnson, come out and express support for a ‘Brexit’. Media announcements have arguably affected Sterling exchange rates more dramatically than economic figure releases as of late, so I’ll be keeping a close eye out for further announcements by key figures within the UK regarding the upcoming EU referendum.
Economic news releases of note are tomorrow’s Inflation figures for the UK, and then Wednesday see’s the release of Retail Sales Figures, both of which could have an effect on Sterling’s value although I’m not expecting any major swings.
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