A positive end to the week saw sterling further its gains against both the euro and US dollar, as a member of the US Federal Reserve’s monetary policy committee spoke out about the dangers of a premature increase in US interest rate.
The week ahead could be an important one for sterling, with a host of data released from the UK, including Purchasing Managers Index (PMI) data from a number of industries. The Manufacturing PMI will be released on Monday, with the index expected to highlight continued growth. This will be closely followed on Tuesday by the PMI for the construction industry, which has shown significant expansion over the past year. PMI data for the services sector on Wednesday will be eagerly awaited, with this sector contributing to around 70% of UK industry. Following this we will see the release of the latest interest rate decision from the Bank of England. Following recent comments from BoE Governor Mark Carney, it is highly unlikely we will see a rate change, resulting in something of a non-event here.
Sterling’s strength against the euro and dollar make it a good time to buy – contact your trader for live rates, news and currency-purchasing strategies.