Sterling Pound Review February 6th

Apparently it’s only Angela Merkel who has yet to agree to reciprocal residency rights following our departure from the EU. If she does acquiesce that will be a great relief to many UK and European citizens who have moved from their homelands and set up a home elsewhere in the belief that everything was secure for the long term.
UK economic data last week disappointed. Not disastrous but enough to undermine sterling and ensure that Governor Carney continues to be circumspect about possible UK interest rate increases despite inflation heading back up towards 2%. Data this week is limited so it is likely that politics dictates sterling’s movements.
The euro did best last week as the Eurozone data continues its upwards trend, albeit at a slight rather than steep incline. Lots more data this week so we wait to see if the trend continues.
In the US, the new government is still keen to see a weaker dollar as they view its current strength as unsupportive of US exports and giving a unfair edge to other countries namely Germany and China.
As we start the first full week in February, uncertainty is still high with politics to the fore and currency movement still very difficult to predict.

 

Tags: Sterling Pound Review
Posted on February 6th, 2017