Published: 12/05/2022 By ECAPSterling lost further ground against the Dollar during yesterdays trading session with sterling losses being extended for a fourth consecutive week. Investors and analysts widely note the recent movement on cable in particular is massively oversold, however momentum seems to be with the dollar due to the wide disparity between the Bank of England and FOMC. It would seem that before we can see any form of recovery, markets need to see a bold movement and statement from the BoE in terms of monetary policy or indeed macroeconomic data failing to meet with expectations in the states. At this given time, neither seems realistic, but with UK inflation looking likely to push outside of forecasts, the BoE may be pushed into a more hawkish stance.
The recent state of the dollar being so strong has echoed through into EURUSD as well as the pairing fell by over 0.5% yesterday, seeing the pair edge from the heights of over 1.05 to now trade around the 1.0430 levels as we type. This afternoon will see the release of Producer Price Index data from the states where the data is forecast at 0.5% from the previous reading of 1.4% showing a slight decline, apart from this we see a few medium impact economic data releases due for release also.