Sterling pushed to its highest level against the euro in two months on Friday, despite a larger than expected uplift in manufacturing growth throughout the Eurozone in September. Over the last two days of last week, sterling gained three cents against the euro, the catalyst being the press conference following the European Central Banks monthly meeting where its President Draghi “hinted” at further Eurozone quantitative easing being announced in December.
Another quiet week for UK data releases lies ahead for sterling, with the most significant data on Tuesday. Preliminary gross domestic product figures for the previous quarter will provide an indication of economic growth in the UK and a backdrop for when UK interest rates could be increased. The figures are expected to show that expansion has slipped to 0.6%. Following this, figures showing net lending to individuals throughout September will provide the next point of interest, with no other significant data scheduled for the release from the UK during the rest of the week.