A stellar week for GBP
GBP/USD reached a two-month high yesterday, gaining 1% in the day and marking a near 4% rise since the beginning of the month. Against the euro, sterling also made gains, breaking the 1.1700 mark. Thursday morning’s positive retail sales figures marked a streak of positive data releases for sterling (if you include the confirmation of ‘forward guidance’ from the BoE).
US unemployment claims were down to a fresh 5 year low and along with steady inflation this was enough to put the greenback in the winning path against all the major currencies yesterday, with the exception of Sterling.
The US data released yesterday lunchtime demonstrated the market has one and only one idea in mind: QE tapering. Majors reverted most of their latest gains, and the dollar surged to fresh daily highs across the board. The EUR/USD sunk to 1.3222 after flirting with the 1.3300 level. However USD failed to maintain its gains with market uncertainty winning out.
Today is a very quiet day for data with the exception of The Reuters/Michigan Consumer Sentiment Index which is released at 3pm. This is a survey of personal consumer confidence in economic activity and shows a picture of whether or not consumers are willing to spend money.
On Monday morning we will release our fourth video broadcast – giving you a heads up on all the, potentially, market moving events of next week. This will become a weekly regular so keep an eye out on our blog and social media sites!