Sterling came under renewed pressure early on Friday, falling to a new low against the dollar. It did manage to regain some ground to finish up for the day, as some traders unwound short dollar positions. It looks as though Sterling may have been slightly oversold late last week, as it has continued to regain ground early this morning. Friday afternoon also saw US consumer confidence came out marginally below expectations, but reiterated the theme of increasing positive sentiment stateside, albeit at relatively low levels.

UK Rightmove House Prices were delivered overnight, out at -2.3% for August, further illustrating the problems within the home property market. Oil futures have risen over $1 since Friday to circa $115 per barrel as the tropical storm Fay raised supply concerns in the Gulf of Mexico. This highlights that last week’s golden child, the dollar, still remains vulnerable to commodity movements, in particular oil. The domino effect of this movement saw commodity currencies made a slight comeback. 

No major news data for the day, but the Euro trade balance and the NAHB Housing market index may provide some volatility. Looking forward, the big piece of home news for the week is the BOE minutes due on Wednesday which is assured to provide some insight into possible interest rate movements. Euro Zone will come under further downward pressure later in the week, with manufacturing and service PMI due on Thursday

 ———————-Please feel free to contact me (jeremy.cook@worldfirst.com) if you have any questions or thoughts regarding these updates or if you are interested in a particular event in the calendar. If you would like to discuss your foreign exchange requirements, please contact our:Corporate Foreign Exchange Team on 020 7801 9050 or our Private Client Currency Exchange Team on 020 7801 9080. Disclaimer: The above comments are only our views and should not be construed as advice. You should act using your own information and judgement. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute the author’s own judgement as of the date of the briefing and are subject to change without notice.Any rates given are “interbank” i.e. for amounts of £5million and thus are not indicative of rates offered by World First for smaller amounts. E&OE. Definitions of jargon/market terms can be found in our Glossary of Foreign Exchange Terms. 

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