Our currency exchange partner Smart has sent us the following update on sterling and euro movements over the last week plus an indication of what to look for in the next few days.
Sterling fell at the last hurdle last week – how will this week fare?
Sterling struggled on Friday, giving away the recent gains seen against the US dollar despite weaker-than-expected US non-farm payrolls data.
We expect this week to be quiet, with investor focus trained on the US where we will be hearing from Federal Reserve Chair Janet Yellen later in the week when she reports to the Senate banking Committee on Wednesday/Thursday. The main point of interest in the UK will be the latest trade balance figure released on Tuesday. Following this, manufacturing production throughout January is likely to have the highest impact, with sterling likely to gain support should this figure beat expectations.
Euro ends a good week on a low
The euro ended an impressive week in a muted fashion as it remained almost exactly unchanged against sterling but lower against the US dollar, falling back from the recent three month highs. The small movement against the US dollar was mostly down to positive US jobs data, while disappointing economic reports from the had a negative impact on the single currency. From the Eurozone, data earlier on Friday showed that German factory orders fell by 0.7% in December, compared to expectations of 0.5%, after a 1.5% increase the previous month.
The main release for this week will be Gross Domestic Product (GDP) figures from Germany this Friday which are forecast to remain at 0.3%.
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