Sterling likely to be influenced by events elsewhere

Sterling looks to be at the mercy of events elsewhere this week as UK data releases for this week are somewhat limited. Chancellor Merkel has been re-elected in Germany which is a positive for Eurozone stability but now that this event is over I do wonder if all the problems that have been hidden from view for the last six months will reappear. Similarly the US has some interesting dynamics at play which could undermine the US dollar. Sterling finished Friday in subdued fashion as little key data came out of the UK. The only release relating to the pound came in the shape of public sector net borrowing figures, and these came out better than anticipated. Today there is a speech from a member of the Monetary Policy Committee and tomorrow is also quiet with some more members speaking alongside the release of the mildly influential mortgage approvals data. Thursday holds the most significant data; the current account figure, showing the difference between imports and exports. Friday then rounds off the week with little of note, to finish a seven days seemingly to be quieter than last. Call your trader now for the latest rate on sterling, as the pound looks to hold its good levels.