Good Morning,

Sterling struggled last week on the back of some weak economic data, and house price inflation was seen to be at its lowest level since 1996. Also, consumer confidence in the UK posted its lowest outturn since December 1992. This data, together with Mervin King’s dovish remarks, supports the view that more UK interest rate cuts are to come, and at a faster pace than the market currently expects.

This morning Sterling continued to lose ground against most currencies, with GBP / EUR trading at fresh all-time lows of 1.2565 and GBP / USD trading as low as 1.9852.

Economic news out this week:–

In the UK we have the manufacturing PMI on Tuesday, construction PMI on Wednesday and services PMI Thursday. The market will also be keeping a close eye on the Bank of England credit conditions survey for Q1 on Thursday.

In the US the most important data release will be the March Non-farm payroll number out on Friday.

Michael Ince
Senior Trader
First Rate FX

Archive News

This commentary is generic and may not suit all circumstances. Before taking any action, we recommend either contacting your trader for guidance or obtaining independent financial advice. The information in this document was obtained from sources believed to be reliable but its accuracy and completeness cannot be guaranteed. The views and recommendations in this communication are typically short term trading views. Comments constitute views at the time of writing and are subject to change without notice. The rates shown are all indications. For specific quotations, please contact your usual trader. This document is not intended as an offer, solicitation or recommendation to buy or sell.