Home > Resource Hub > Daily Market News > Holiday season over for Sterling

Holiday season over for Sterling

Holiday season over for Sterling

The Sterling had a mixed day during yesterday’s European trading session as it ended yesterday up against the Euro, but down versus the Dollar. Net lending to individuals (MoM) was down from £5.1bn to £3.8bn. Mortgage Approvals in June were slightly down as well, but this has been attributed to tax changes earlier in the year and Brexit.

Also, although there had been no change in M4 money supply (all UK money in circulation), there was a significant decline in UK bond yields during the day which curbed any sort of buying support for the Pound.

There was a diverse set of results yesterday morning from the Eurozone, sending the Euro weaker by 0.25% against Sterling. Interestingly, disinflation in Spain was not as bad as expected – the Spanish Flash CPI figure showed an annual inflation decline of -0.1%. Italian retail sales remained unchanged whilst German Preliminary CPI showed no alteration in prices over the last month. The Euro ended the day at around the 1.1739 levels against Sterling.

Over the pond, the US Conference Board’s consumer confidence index for the month of August unexpectedly rose to 101.1, marking its highest level since September 2015. The data was much better than the expected 97.0 and the 96.7 (revised lower from 97.3) recorded in July. Yesterday’s stronger than expected release supported the possibility of the Fed raising interest rates in the near future and the US Dollar strengthened across the board. Cable (GBPUSD) ended the day on 1.3089.

Data to Watch: 7am EUR German Retail Sales MoM, UK Nationwide House Price Index MoM. 8:55am EUR German Unemployment Change. 9am EUR Italian Monthly Unemployment Rate. 10am EUR Eurozone CPI Estimate YoY, Eurozone Unemployment Rate. 1:15pm US ADP Non-Farm Employment Change. 2:45pm US Chicago PMI. 3pm US Pending Home Sales MoM.

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