Sterling slipped on Friday after remarks by a Bank of England policymaker that there was some risk of a double-dip recession fuelled market concerns about the UK economic outlook.
Pound Sterling – UK Markets
Andrew Sentance said that it must be recognized that “there is some risk of a double dip” with regard to the recession though he expected inflation in Britain to fall back to the central bank's 2% target, or below, helped by muted wage growth.
The pound was under pressure after failing to break above USD1.5330 yesterday and at 1005 GMT traded at USD1.5240. Against the euro, the pound fell 0.5% in early trading and at 1013 GMT traded at 1.1204.
For those looking to make a foreign exchange transfer today it would be worth monitoring any political developments as the prospect of a hung parliament still hampers sterling’s gains despite polls favoring the conservatives earlier this week.
US Dollar – US Markets
The dollar was near a one-week high against the euro as a report showed that manufacturing in the Philadelphia region expanded in March at the fastest pace this year. The improved US economic outlook and modest policy tightening outlook continue to highlight the US's relative economic growth, providing support for the greenback.
US currency was also boosted as economists said the Federal Reserve may raise the discount rate, charged on direct loans to banks, before the start of the next two-day meeting on April 27th.
Anyone making an overseas transfer with US dollars will want to keep across the situation in Greece as it continues to weaken the euro against the greenback.
Euro – European Markets
The euro headed for its biggest weekly fall against the US dollar since the start of February as fears that Greece will fail to secure financial assistance from the EU damped demand for the currency.
At 1032 GMT the euro traded at GBP0.8925 and USD1.3602.
If you’re looking to make a euros transfer there isn’t a great deal expected in terms of data releases. Without any major economic events the market will likely be driven mostly by supply and demand.
Other Currencies – Highlights
The yen fell today versus 11 major counterparts as Asian stocks gained amid signs the global economic recovery is gathering momentum, boosting demand for riskier investments.
Canada’s retail sales climbed 0.6% in January, according to data. The Canadian dollar fell 0.4% against its US counterpart.
For great rates and a swift transfer, contact Currency Solutions now on +44 (0)20 7740 0000.
Pound Sterling Fails to Capitalise on Cabinet's Support for Brexit Deal
British Pound Rises as PM May Calls Cabinet Meeting on Brexit
The US Dollar Continues to Strengthen Against European Currencies