This week is going to be an interesting week for sterling as we see a raft of key data released here and in the rest of the world and we may well see significant movement during the course of the week. On Friday we saw sterling rise slightly higher against the dollar on Friday after house prices in the UK rose by 9.4% in January, boosting investors’ confidence in the UK economy and its currency. Greater attention however, was drawn to the sharp drop in sterling against the euro following inflation data from the Eurozone, which came out better than expected, driving demand for the currency.
The week ahead once again sees some key data released in the UK in the form of Februarys purchasing managers’ index (PMI) for manufacturing, construction and services on Monday, Tuesday and Wednesday respectively. These figures will provide a good indicator of how businesses are reacting to the markets, and show the level of expansion in the respective sectors. The most important statement will come on Thursday, when the Bank of England (BoE) will announce any changes to interest rates. The interest rate is unlikely to change, with the Bank’s commitment to a wide range of conditions by which to judge future interest rate changes, but any hints about the future provided by the monetary policy committee in its statement could prompt market movement.
Wondering when to buy or sell sterling in what could be a busy and volatile week for sterling? Contact your trade now for live rates, updates and strategies for minimising risk and saving money on currency conversions.