An eventful end to last week saw sterling push higher against the euro as the Greek government rejected a proposal from their creditors for a five month extension to ease their debt burden. They then called a referendum for next weekend and have closed the Greek banks – desperate times and as a result the euro opened this morning nearly two cents down against sterling.
In contrast sterling had a steady week against most other currencies including the US dollar.
The week ahead sees the release of some key UK data. The latest current account balance is released on Tuesday morning, a significant deficit is forecast, followed swiftly by the final update for first quarter growth figures which are expected to show a slight improvement.
Towards the end of the week, we have the release of June Purchasing Manager Indices from the UK manufacturing, construction, and services industries. Although the earlier two releases will be of interest, investors will be waiting intently for the release of data from the services industry on Friday as this sector dominates the British economy. Expectations are for small increases from Mays readings for all three indices.