Tue 24 May 2011 Unfortunately, Sterling is facing what now appears to be the age old story of being knocked down just as we pick up pace. In summary a view across the markets at present is not a case of who makes the correct steps going forward, but more to do with who struggles the least. This will dictate Sterling's strength (or lack of) going forward this year.
Pound Sterling – UK Markets
Whilst it is nothing of great significance, public sector net borrowing has come in worse than expected. The Office for National Statistics states that a fall in tax receipts are to blame for this unexpected data. Lets also bear in mind the cuts have being made across the board by the government and may take some time to kick in.
US Dollar – US Markets
The US will later today reveal figures on new home sales which is often a good indication of both consumer confidence and the overall state of the economy. With figures expected to be slightly higher than previous, indications suggest that today could be a volatile ride for the US Dollar
Euro - European Markets
Germany, Europe's apparent shoulder to lean on has once again come up with the goods this morning. GDP figures and IFO expectations have both come in as or above expected. Subsequently, the single currency has cancelled out some of the losses seen over the last few days.
The Swiss Franc is expected to climb to a record high against the dollar as charts point to a clear upwards trend. With little on the horizon to suggest otherwise, the franc looks to be moving in the right direction.