The kiwi was weaker in trading yesterday following some concerning US economic data

The pound made gains yesterday, taking support from a revised IMF report and an easing of risk activity to close the day at 2.2316 up 0.7%.

  • Rising risk aversion enabled the pound to advance over a cent against the kiwi yesterday, with investors retreating into haven currencies.
  • US employment claims rose last week, posting a figure well above forecast, dulling hopes of a swift recovery in the US, but supported gains for the UK currency.
  • The negative data led to a sharp retreat in equity markets which prompted investors to sell the higher-yielding currencies.
  • Additionally, the International Monetary Fund revised their UK growth prediction next year to 0.9% from 0.2%, which boosted confidence in the UK economy.
  • This morning, sterling has slipped back slightly, currently trading marginally below the 2.23 level ahead of US non-farms payrolls data.