UK retail figures came in below forecast today and caused sterling to slump further after yesterday’s losses from the Bank of England Minutes. The figure may have been partially due to England’s dismal display in the world cup not allowing for the level of spending some retailers anticipated, and it served to reign back a rampaging pound. Whilst the UK is recovering well it still doesn’t mean that an interest rate hike is imminent based on the Minutes and retail figures.
However we do have UK GDP figures out for Q2 tomorrow so a strong showing could reverse some of today’s losses so keep a close eye on things at 9.30. With Aussie inflation rising earlier in the week the Aussie sterling see-saw has tipped back in the Aussies favour, and as predicted is still hovering near the 1.80 barrier.
It looks as though this series of peaks and troughs is likely to continue as data comes out above and below expectations for both currencies so well worth taking advantage of these movements via stop loss and limit orders. If you need to make a currency transfer and would like help then feel free to email Colm at [email protected] and I would be happy to explain how our service works.