Sterling had a difficult week last week as economic data disappointed. For example, retail sales in January decreased by 1.5%, which was a greater reduction than forecast and indicates that the economic recovery in the UK may not have gained as much momentum as previously thought.
This week there is a dearth of UK economic data releases so it may well be a case of news elsewhere which helps sterling arrest its slide and return it to a positive trend. The first major news comes on Wednesday when the second estimate of growth for the final quarter of 2013 will be released. At this stage no change is expected from the first estimate although there will be greater detail on where the fourth quarter UK growth came from. Friday sees Governor Carney speaking ahead of the next week’s Monetary Policy Committee meeting. This may provide clues to any planned changes in monetary policy, with interest rate changes continuing to be of particular interest.
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