A difficult week for sterling has seen it lose ground against the euro, the US dollar and most other major currencies amid mounting fears over the upcoming UK general election. Tuesday’s release of the lowest UK inflation figure since 1989 didn’t help sterling either as price growth fell to 0.0% throughout February. Compared to a rebound in US inflation to 0.2%, sterling once again found itself struggling against the US dollar. Yesterday positive retail figures of 0.7% for February, January’s was 0.1%, did support sterling.
Today we will hear from a number of members of the monetary policy committee, as well as Bank of England Governor Mark Carney; investors will be listening intently for any news relating to future UK monetary policy. Elsewhere, we will see the final economic growth figure from the US over the previous quarter. This significant piece of data has the potential to affect markets should it differ from the forecast 2.4% level.