There was a lack of UK data yesterday, but the pound was nonetheless in a volatile state. Global politics was the focus of the day, which largely benefited Sterling.
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Daily Market Analysis August 10th 2017 |
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Rising US-North Korea tensions boost pound There was a lack of UK data yesterday, but the pound was nonetheless in a volatile state. Global politics was the focus of the day, which largely benefited Sterling. GBP/EUR is currently trending at 1.1057, while GBP/USD is at 1.2980. GBP/AUD is trending around 1.6471, GBP/NZD at 1.7841, and GBP/CAD 1.6514. Will global political concerns continue to drive the markets wild? Read on for details of the mound of UK data GBP has to contend with today… |
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Today's Rate The rates above are using the British pound (GBP) as the base rate. All rates are for indication purposes only. Prices can vary dramatically based on amount and delivery date. |
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| "Assuming yesterday’s market panic has calmed down and tensions between the US and North Korea relax somewhat, the pound will have a pile of data to contend with." Transfer 24/7 with our currencies direct app |
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What’s been happening? Yesterday saw the pound go for a bit of a ride, with the markets on skittish form following the latest developments in US-North Korean relations. In response to reports that North Korea now has a miniaturised nuclear warhead that it can mount onto its existing intercontinental ballistic missiles (ICBMs), US President Donald Trump told journalists that North Korea needed to stop threatening the United States. If they didn’t, he said, ‘They will be met with fire and the fury like the world has never seen.’ The markets were rather upset by this, with stocks, risky currencies and commodities across the world plummeting as investors rushed for safe places to put their money. The pound came out of this well; while the UK’s future may be cloudy, there are no concrete risks on the horizon, making GBP more appealing that the euro and US dollar, which are facing cautious central banks and political tensions. Sterling was therefore able to rise, even though there was no domestic data and the overall picture of the economy remains gloomy. |
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What's coming up? Assuming yesterday’s market panic has calmed and tensions between the US and North Korea relax somewhat, the pound will have a pile of data to contend with. June’s industrial and manufacturing production, construction output and trade balance figures are all set for release soon, followed this afternoon by July’s GDP estimate from the National Institute for Economic and Social Research (NIESR). The general overview of the UK economy’s health could clearly change significantly depending upon how this data prints. There’s nothing much out from the Eurozone, while US initial and continuing jobless claims figures and a press briefing delivered by Federal Reserve official William Dudley could cause some minor movement for GBP/USD. We’re here to talk currency whenever you need us, so get in touch if you want to know more about the latest news or how it could impact your currency transfers. |
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| Phil McHugh,
Trading Floor Manager Phil provides dealing and hedging services whilst also helping to manage Currencies Direct overall market exposure. |
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