blackfriars bridge evening

Sterling struggles

4th January 2018 Market Update

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?? GBP – Construction PMI data came in only slightly negative of forecast yesterday. However, on the back of poor Manufacturing data from the previous day, this dragged down the value of Sterling. The currency has been struggling for support for some time and this figure may have simply been a catalyst for some market repositioning, causing the currency to retrace.

This morning sees the final act in the trilogy, with the release of Services PMI data. Again, a poor figure here could leave the pound vulnerable to further losses.

?? EUR – There is little to report with the single currency yesterday, other than making gains versus the pound. The currency held steady against the US dollar.

Once again, there is no data of any significance today.

?? USD – The dollar finally stabilised yesterday, following a period of steady decline. This may well have been on the back of positive ISM Manufacturing PMI data. However, it failed to claw back any value other than against the pound. The evening’s FOMC meeting minutes failed to make any impact.

That may change today with the release of the Non-Farm Employment Change figure this afternoon. It is a key monthly piece of information and could affect dollar value.

 

Key Announcements

?? GBP
09:30am: UK Services PMI

?? USD
13:15pm: US ADP Non-Farm Employment Change

 

Summary: In a relatively quiet day, the pound lost value following the release of slightly disappointing Construction PMI figures. As a consequence, the US dollar and euro made significant gains.

 

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Darren Kilner

Darren Kilner

Darren is Head of Dealing at FairFX. Darren lives and breaths FX, his Mastermind topics are G8 currencies and economic forecasts.

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