Sterling drifted lower on Friday as UK construction output suffered the steepest fall since February. Although this data had only a mild impact on the markets, it still pushed sterling lower against both the euro and US dollar.
With a slew of disappointing data last week, investors will be hopeful we could see some better figures in the week ahead. Key inflation data is due for release on Tuesday and if we see a repeat of last month’s surprise reduction in inflation, you can expect to see sterling fall. Bank of England (BoE) Governor Mark Carney speaks on Tuesday, and any further hints as to when we could see interest rates rise in the UK will likely case a reaction for sterling in the markets. Wednesday brings the release of the highly influential unemployment rate which, since dropping to the lowest level since April 2009, is expected to remain consistent and support the view that the UK economy is performing well.
If you are looking to buy or sell sterling, we suggest contacting your trader now for live rates, news, and currency-purchasing strategies.