December Starts Well For Sterling

Monday saw the pound make some decent gains across a basket of major currencies yesterday, helped by a better than expected reading for manufacturing PMI. This came in at 49.1 compared to 48 expected but unfortunately being below the mid point of 50, it showed the sector was still in contraction rather than growth.

US ISM manufacturing PMI came in lower than hoped, showing a contraction figure of 49.5, compared to a growth figure of 51.3. This helped those looking to send money to the USA gain a little more for their Pound as rates hit a one month high.

Sterling/Euro rates failed to move much as gains for the pound were tempered by the news Germany had approved the aid plan for Greece.

Focus is on the fiscal statement by George Osborne on Wednesday so despite house price data and construction PMI tomorrow the pound is likely to remain under pressure. The Chancellor stated on Sunday that growth for the UK would be sluggish and with the Office for Budget Responsibility likely to lower growth forecasts and state we could miss target on our debt reduction plan, unless they surprise with their forecast the pound could be badly affected.

With that in mind, those looking to transfer funds overseas in the coming few days or weeks would be mindful of the potential rocky road ahead. Contact Currency Index today for some friendly guidance through your upcoming requirements.