Sterling slips after profit-taking

The pound is off versus the US dollar, as dealers lock in their profits from last week’s late rally.

The pound is trading at $1.615 against the dollar, down 0.1% on the day, as traders secure profits from the surge seen on Thursday and Friday.

There has been low volatility throughout the trading day as there have been no major economic announcements from either the UK or the US. The partial shutdown in the US disrupted its usual flow of economic data, however business will resume tomorrow with the non-farm payrolls report and the latest unemployment rate. The market consensus is for there to be an increase of 180,000 new jobs on the payroll and for the unemployment rate to remain unchanged at 7.3%. The partial shutdown may have weakened the US labour market so the report may miss expectations.

On Wednesday the Bank of England will announce the minutes from its latest meeting. We are not expecting any major surprises as interest rates and the bond buying scheme are expected to remain unchanged, but dealers will be listening out for any hawkish language from Mark Carney.

Spot FX GBP/USD chart

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CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.