Currency Note Sterling

Can sterling recapture the losses it sustained last week?

By Callum Holmes August 24th, 2015

Sterling ended last week at its weakest point against the euro for two months, as investors reacted favourably to the news of Greek Prime Minister Tsipras’s resignation and the call for snap elections – although the British currency was able to push higher against the US dollar, as economists pushed back their bets on when the Federal Reserve would raise interest rates.
Sterling has continued to weaken this morning as the market pushed back its expectations for an interest rate hike from the Bank of England (BoE).

On the data front, it is due to be a quiet week for sterling, with little informative fundamental data released from the UK until Friday; here we will see the second estimate of UK economic growth. This revised figure is always keenly awaited, with any changes caused by a greater understanding of the economic environment likely to cause market movement. Aside from this, the annual Jackson Hole Symposium begins on Wednesday, with a host of speeches from central bankers and other influential officials. With representatives from across the globe present, there is a great likelihood that we could see a reaction across the entire foreign currency market.

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