020 7898 0500A weaker US dollar across the board pushed the GBP and USD pairing to a fresh 10-month high. The move happened towards the end of the European trading session, with no data releases or newswires. Sentiment around sterling remains upbeat, as UK net lending to individuals beat forecast, meaning two things: individuals are still willing to borrow and spend, while lenders are still prepared to lend.
As we alluded to yesterday, it is a busy week for economic data. A key highlight of the week will be the release of the purchasing managers’ indices for the manufacturing, construction and service sectors. These are set for release on consecutive days, today through to Thursday with the highlight being the dominant service sector.
Meanwhile, the big event risk will be the Bank of England’s (BoE) interest rate decision and quarterly inflation report, which is now dubbed ‘Super Thursday’. Last time around there was a surprise as three members voted for a interest rate hike. As a result, the voting pattern will be closely watched. In addition, BoE Governor Mark Carney will speak during the release of the inflation report. His rhetoric will be deciphered for clues on future monetary policy.
