A positive end to the week saw sterling make some small gains against both the euro and US dollar on Friday. Economic growth was estimated to have slowed slightly to 0.7% over the previous quarter, coming in line with the consensus forecast. US new home sales in comparison failed to pick up as expected, with the US dollar suffering on the back of this.
A quiet week lies ahead for sterling, with little key economic data being released for the UK. Therefore it is likely to be a week where sterling is more influenced by events elsewhere. Monday sees a speech from the deputy Governor of the Bank of England, and investors are expected to be listening intently for any further clues regarding monetary policy. Aside from this, housing inflation figures are set to be released and show an increase of 0.4% in house prices over the past month. We will also see the release of an independent survey of consumer confidence on Friday, providing insight into the overall economic situation in the UK.