Sterling markets looked to steady the ship on Friday, preventing further downward movement against both the euro and US dollar, even as UK manufacturing production slowed by 1.1% throughout March. Following a tough week which saw sterling fall to a November 2013-low against a weighted currency index, investors will be hoping for more positive news to boost the currency this week.
Concern over the effects that an exit from the EU will have on the UK’s economy still dominate market movement, but there are a number of key events this week which could influence investor sentiment. Inflation data will be released on Tuesday and promises to show that consumer inflation has remained steady at 0.3% or may have even increased to 0.4% throughout March. Wednesday will see release of the Bank of England (BoE) credit conditions survey. Despite detailing the inherent risk seen by a number of UK lenders, this is likely to be overlooked due to the BoE’s latest interest rate decision being released on Thursday. Although there is unlikely to be any change in voting pattern, the minutes of their meeting will reveal the committee’s thoughts on monetary policy moving forward.
If you are looking to buy or sell sterling, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.