For the last couple of weeks sterling has been trading in a limited range against the US dollar and the euro and very close to recent lows.
Brexit sentiment is shifting on a day-by-day basis, with rhetoric supporting sterling in the earlier part of last week negated by the week’s close. Against the euro, sterling seems to be more supported, but this is more of a euro weakness story on the back of the European Central Bank (ECB)’s statement on Thursday following their meeting.
This week sees Carney speaking on Tuesday afternoon, followed by some preliminary UK Gross Domestic Product (GDP) data on Thursday. Once again, there is expectation that economic data will be ignored, with the spotlight remaining on political factors to drive the pound’s market direction.