Sterling falls to 3 year lows, US dollar remains strong | Smart Daily Currency Note

Sterling

Sterling plummeted to 3 year lows against the US dollar yesterday after manufacturing production figures and industrial production figures came in well below most analysts' expectations. The fall came despite the fact that the UK was one of only two nations to see its Growth forecast upgraded by the IMF. Today, like the rest of the week, is quiet on the news front for the UK with traders looking to next week for the minutes from the first Monetary Policy Committee meeting under Mark Carney's governance. Any major movement in rate today will be in reaction to news from around the world - particularly from the US as the minutes from this month's Federal Open Market Committee (FOMC) are released this evening. Call your trader for the latest on sterling.

Euro

If sterling was weak, the euro was just as bad yesterday falling three quarters of a percent against the US dollar as a member of the European Central Bank clarified that not only was there unanimity on the recent rate decision, but also that interest rates would absolutely not be raised for at least 12 months. A quieter day again on the news front for the euro as well - French industrial production figures being the biggest release. Get in touch today for a live update on rates.

US dollar

A strong US dollar hit 3 year highs against sterling yesterday, also touching the highest point since March against the euro as everything crashed around it. This evening sees the release of this month's FOMC meeting minutes, which traders hope will clarify recent comments on the end of the super-loose monetary policy. The Chairman of the committee speaks after the release so we will no doubt see enhanced volatility ahead to the two events. The big question today is how high can the US dollar go, call your trader to find out.

Worldwide

Elsewhere it was a day for the commodity back currencies, as the Australian, New Zealand and Canadian dollars shone making gains across the board as risk appetite grew. The Japanese yen also had a strong day yesterday, holding its ground against a strong US dollar and making gains against other struggling major peers. Overnight we had Trade Balance figures from China, and an influential consumer sentiment survey from Australia ahead of employment figures tonight. Get in touch with us today for the latest news and rates for your currency.