A mixed week for sterling has seen marginal gains against the euro tempered by a disappointing week versus the US dollar. With no significant data released from the UK this week, sterling movements were largely dominated by events elsewhere. At the forefront of investors’ minds has been the ongoing Greek debt crisis – the Greek government have been trying to secure funding at eleventh-hour Eurogroup meetings with European finance ministers.
With Monday’s Eurogroup meetings passing with no word of a deal, sterling strengthened throughout the start of the week to the best levels seen in a month against the single currency. However, with a second round of meetings taking place mid-week, and heightened optimism over the likelihood of a deal being struck, sterling fell away against the euro throughout the latter parts of the week.
Against the US dollar, sterling has steadily lost ground following positive data released from the states. Monday’s existing home sales data beat expectations, whilst economic growth figures on Wednesday saw the economy contract in line with expectations.
Today we will hear from Bank of England (BoE) Governor Mark Carney, and with Barclays yesterday forecasting the first interest rate hike to come in the first quarter of 2016, and increases to follow every 6 months thereafter, investors will be keen to hear any hints from the Governor.