Currency Note Sterling

Busy week for UK data, expect lots of movement

By Smart Currency December 16th, 2013

Sterling finished the week in disappointing fashion, falling against all 16 of its most traded partners. The UK currency made a third straight daily loss against the US dollar as investors increased their belief that we could see a withdrawal of monetary stimulus in the US. Furthermore, some commentators are suggesting that sterling weakness is a natural correction following a period of sustained gains, moreover, comments from the chief economist of the Bank of England did little to help the pound as he suggested interest rates would remain low. This drop came in spite of construction data showing that output had increased by 2.2% for the month, significantly better than expected. This week, there is plenty of data due from the UK liable to impact the markets in the run up to Christmas. Things start quietly, with the House Price Index from Smart partner Rightmove, before the Bank of England (BoE) Governor Mark Carney then throws his words of wisdom into the mix. On Tuesday we have inflation data in the form of the Consumer Price Index with expectations of a small increase from October which had shown a dramatic reduction in UK inflation. Wednesday could be crucial for sterling as data showing the overall unemployment rate is released. If total employment is above 30 million and the unemployment rate is below 7% then this could boost sterling as reduced timescales for interest rate increases will be the order of the day. Retail sales are then due on Thursday, with Friday closing out a busy week with the UK current account figure. Call your trader now for the latest sterling rates, in a data filled week.