Home > Resource Hub > Daily Market News > GBP Recovers Against USD

GBP Recovers Against USD

GBP Recovers Against USD

Happy Thanksgiving to one and all and as our American cousins take the day off to gorge themselves on far too much food and spend time with their families, the world keeps turning and the markets keep moving although at a slightly slower pace than normal.

Over the last couple of days, we have actually seen the Pound make some gains against the US Dollar. Indeed it has gained 1.2% since it dropped to a 14-month low last week. The reasons for this are due to soft data out of the US: durable goods orders are down, jobless claims have increased and the University of Michigan’s consumer confidence reading has been slightly altered to the downside. Also, Sterling is profiting from a lack of uncertainty in the markets. The lack of a rate hike seems to have been accepted by the markets so everyone is just moving on and expectations have changed.

The question of Quantitative Easing is still on the tip of the ECB’s tongue. As we await the Eurozone’s Inflation report, this could well heap further pressure to introduce extraordinary measures. Mario Draghi is speaking in front of The Bank of Finland today and it will be interesting to see if he reiterates the views of ECB Vice President Constancio who dismissed doubts over the potency of QE and hinted it could be introduced in Q1 of 2015.

Today’s data is mostly from the Eurozone and we have German unemployment, Eurozone Consumer Confidence, Draghi’s speech and German CPI.

 

Share this case study
Set yourself up in minutes, make payments the same day: it’s free, easy and without obligation.