Sterling loses momentum after a run of positive data earlier in the month

Last week saw sterling lose some of its gains from previous weeks when it was buoyed by a raft of unexpected positive data. The pound has started to stumble after the door was left open on Thursday for a further rate cut this year by the Bank of England (BoE), and weaker-than-expected inflation data on Tuesday. Positive data from across the pond in the form of the US Consumer Price Index (CPI) also didn’t help the cause as sterling returned to trading ranges not seen against the US dollar since the middle of August. A positive note on Friday came from BoE policymaker Kristin Forbes, who said that the hefty slide of sterling will help to narrow the country’s current account deficit.

This week is very light on data for the UK, with only public sector net borrowing standing out from the data calendar. Attention will turn to other currencies to give sterling its direction. Sterling is also likely to be influenced by ongoing rhetoric in regards the US election, interest rate hike speculation by the Federal Reserve and also ongoing issues with the European banks.