GBP: pound hold its own on a quiet day

With no economic data releases on the schedule and MPs still on their summer recess, it was an extremely quiet start to the week yesterday for the UK. Still, the pound managed to hold its own against the euro and dollar, despite some positive news from the eurozone. We will likely see some bigger moves throughout the week when the schedule gets busier, but the key question is in which direction?

Today might cause some moves, with the public sector net borrowing figures for July due for release this morning. Last month we saw a deficit of £4.53 billion so it will be interesting to see if the figure widens or contracts. We will also see the CBI industrial trends orders for August; the figure is expected to dip to 9 from 11 the month before.