The pound recovered some of its losses today against the US dollar as more weak data out of America pushed back expectations of a rate hike from the US Federal Reserve.
At 9.49(GMT) the British currency was trading at$US1.4400 up from $US1.4360 at close of trade on Friday.
The latest empire state manufacturing survey hit the market today at -9.02 against analysts’ expectations for a number of 7.25 and well below last month’s figure of 9.56.
A number below 0 indicates that the sector is in contraction mode.
The disappointing data fueled speculation that the US Federal Reserve may hold their horses on raising interest rates with some now predicting that a cut in rates is even possible which was unthinkable just a few months ago
The real test will be tomorrow when the latest CPI figures from the US are released to the market with disappointing figures all but sure guaranteeing the Fed will keep rates on hold for the rest of the year.
Wednesday’s minutes meeting will also be closely watched for clues on the US central bank’s future movements and volatility is expected in the British pound.
Risk warning: Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, your level of experience and preparation of taking risk. The possibility exists that you could sustain a loss of some or of all of your initial investments and therefore you should not risk more than you are prepared to lose. Please seek independent financial advice if necessary.
|By clicking "Continue" you will be redirected to the website operated by FIBO Group, LTD company registered in BVI and regulated by FSC. Click "Cancel" to remain on this page.|