Currency Watch: Sterling continues slow start to 2013


Sterling has continued its slow start to 2013 with sentiment on the British pound still low.

Standing against the US Dollar continued to benefit American buyers, with rates threatening to break 1.5900, with the GBP weakened thanks to fears surrounding the UK's recession-hit economy.

"UK manufacturing PMI is due this morning," reports currency broker UK Forex , "and if better than expected might provide the momentum for GBP/USD to make it through. If it does and taking a medium term view this might provide opportunities for investors to buy dollars as the outlook for the UK economy remains bleak, evidenced by the weak GDP data released last week."

"Across the pond yesterday US data came in generally weaker than forecast (this included unemployment claims and personal spending) and it dragged on the greenback," added the broker.

The Euro, meanwhile, is looking strong against the dollar as the ECB announced in January that banks would be repaying 30pc of the LTRO at the end of the month. Even disappointing German retail sale data has not hampered the strengthening of the currency, although the USD is expected to continue to improve.

For more information on currency exchange services with UK Forex, visit our currency channel: