Friday was another great day for sterling, reaching eight year highs against the Eurozone single currency.
The question of who will be the first to raise interest rates still looms, and sterling certainly appears to be in the running against its US counterpart. The Bank of England (BoE) suggested in the first part of last week that interest rates could be raised sooner than first expected, given the current, relative positivity of the UK economy.
The major UK matters of note this week are: on Tuesday, the release of Junes Public Borrowing figure, a slight reduction is expected, on Wednesday the release of the minutes of the last BoE meeting which are expected to highlight the need to raise interest rates sooner than later and then on Thursday June retails sales data which is expected to show a slight improvement. So plenty of potential for positive news to boost sterling further.