020 7898 0500Sterling price action settled on Friday, retracing slightly from multi-week highs earlier in the week. Much of the focus on Friday was on Prime Minister Theresa May’s first meeting with US President Trump. Over the weekend, Trump’s ban on travellers from seven predominantly Muslim countries renewed the focus on the relationship between the UK and US. This discussion is unlikely to go away anytime soon, contributing to yet more uncertainty.
The week ahead will be a busy one in terms of data and news releases in the UK.
Lending figures will be released tomorrow. They give the markets an idea of consumer appetite for borrowing and the banks’ willingness to lend.
The manufacturing Purchasing Managers Index (PMI) is set for release on Wednesday. The manufacturing sector has been in the spotlight ever since the pound first plunged following the EU referendum last summer. Hopes are pinned on the sector’s capacity to expand to make up for the expected contraction in the services sector, which accounts for more than 70% of the UK economy.
Another ‘Super Thursday’ is coming up, with the Bank of England’s quarterly inflation report and interest rate decision, followed by Governor Mark Carney’s press conference. Markets will be looking for information on the health of the UK economy, growth forecasts and interest rate decisions.
