Sterling had a mixed start to the week following on from last week’s positive data releases, which pushed it back above some key psychological levels. So far the data releases from the UK since the referendum have not painted the gloomy picture that everyone thought. However, it is still early days and behavioural patterns both from businesses and individuals often take a longer time lag to set in.
There are still several speed bumps in the road ahead and one topic that will be surely discussed at the Jackson Hole Symposium later this week. The three-day Economic Symposium is attended by central bankers, finance ministers, academics, and financial market participants from around the world. At this meeting, it is common for policy makers to signpost it intentions for the future and its current assessment of the economic landscape. The meeting starts on Thursday and can often result in volatility in financial markets.
Meanwhile, it is another quiet day from the UK with only the Confederation of British Industry (CBI) Industrial Order Expectations reading set to hit the wires. This is an indicator of economic health in the manufacturing sector and is once again expected to decline. Its impact on sterling is limited due to the weighting of the sector in the UK economic output numbers.
If you are looking to buy or sell sterling, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.