Currency Note Sterling

Will todays inflation data boost sterling?

By Ricky Bean August 19th, 2014

A quiet day around the globe allowed sterling to make some gains against the euro. Sterling increased for the first time in four days against the euro following comments by Bank of England (BoE) Governor Carney on Sunday that there is little holding back his policy-makers from increasing interest rates from its record-low of 0.5%. The release of minutes from the latest meeting of the Monetary Policy Committee later in the week should give us further insight into whether this view is shared by other voting members. Against the US dollar, sterling made modest gains throughout the morning, although this was eroded throughout the afternoon.
Today we see the release of inflation data for the month of July. Although this is an important piece of data, if it stays close to the 2% target set by the BoE it is unlikely to cause a significant stir in the markets.