THE pound took something of a pummelling off the back of the surprise UK GDP data although much of the recent upside came from the supposition that the Bank of England would hike rates to rein in inflation – regardless of the economic growth implications. Obviously today’s Monetary Policy Committee meeting minutes will make for interesting reading but with yesterday’s sell-off doubtless being bundled with a degree of profit-taking, cable may be able to start grinding its way higher once again. The current IG Index price on sterling-dollar is $1.5788-$1.5790.

Sterling-Australian dollar hit Tipster’s target of Au$1.6200 early on Monday morning, but since then has plummeted all the way to Au$1.5853, with the pair getting crushed by 140 basis points following the dreadful GDP figures. The 50-day exponential moving average halted the slide for now, but those thinking of going long again should maybe wait until we reach the Au$1.5800 level. Spread Co offers a spread on sterling-Australian dollar of Au$1.5872-Au$1.5884.

The Canadian dollar has weakened against the euro on the back of falling commodity prices. Crude oil is Canada’s biggest export and since it has been declining the past few days, so has the loonie. With gold and oil expected to head lower, we could see the currency follow suit. Capital Spreads is quoting Canadian dollar-euro €1.3603-€1.3613.

Go short on sterling-Swiss franc because yesterday’s fourth quarter GDP figures have provided a much-needed reality check for sterling bulls. The -0.5% (non-annualised) drop in GDP marks the weakest quarter since 2009. Even allowing for the bad weather, the Office of National Statistics estimates that growth would have been flat. In recent days more astute players have re-established short positions on sterling because the US and the Eurozone have moved forward. Yesterday’s data seems to bear this out and opens up more marked downside for sterling in coming weeks. ETX offers a spread on sterling-Swiss franc.