Friday proved to be another positive day for sterling as it held onto recent highs against the US dollar whilst strengthening slightly against the euro. With no major economic events throughout the day, sterling traded within narrow margins against most currencies to end the week in a very strong position.
Looking ahead to this week, the key announcement for sterling is likely to be the latest interest rate decision from the Bank of England on Thursday. Whilst no change is expected, investors will look for insight from members of the Monetary Policy Committee (MPC) as to when rates may rise in the future. Manufacturing production figures released on Tuesday will be watched closely by investors following last week’s data showing strong growth for the manufacturing sector; as a result, there is a strong possibility that this figure could exceed expectations and boost sterling further. Furthermore, on Tuesday we will also have the latest growth estimates from the National Institute of Economic and Social Research (NIESR).