020 7898 0500Sterling had a poorish day yesterday, weakening against the US dollar and against the euro. Positive data from the Confederation of British Industries revealed the first rise in UK retail sales for 5 months, benefitting sterling in the morning. Whilst these figures were better than expected, overall sales volumes are still relatively low and growth is expected to slow in August so the effect of this data was limited. Sterling fluctuated to a degree during the rest of the day, largely in response to events elsewhere. The Monetary Policy Committee’s August statement released on Thursday is likely to be the most influential release of the week as traders look to assess how much credence to give the notion of a sustainable recovery in the UK. Any hints as to alterations in monetary policy will impact significantly on Sterling performance as traders look to the statement for an indication of intent. There is little being released in the way of influential UK data between now and then so investor speculation and events elsewhere are likely to drive market movement. Call your trader now to monitor sterling performance.
