Sliding Sterling bucks the trend rallying against the US Dollar

Sterling has today rallied back to its highest against the US Dollar in over a week - having hit $1.43 this morning – with this pattern set to prevail for the next few days, according to foreign currency specialists FC Exchange.

After vast amounts of negative data released in the UK over the past week, confidence seems to be creeping back into the banking sector with Barclay’s declaration that it won’t have to raise fresh capital.

The US Dollar, however, has not been so lucky. Factors conspiring against it include: weak US housing data, which was reported yesterday; further negative economic data being expected this week; plus an uncertainty over the Federal interest rate decision – currently just above zero percent – which is expected today.

Daniel Wray, Senior Currency Broker at FC Exchange comments: “The more weak data that comes from the US, the more traders will see it as a further reason to leave the Dollar and look for better returns, causing further weakness on the currency.

“Those looking to purchase Dollars should use the next few days to do so as we can expect to see further value between the GBP/USD pairing. However, the impending interest rate decision in the UK could mean that this gain is short lived.”