A Strong Finish for Sterling

The pound’s finish to last week was mediocre, as GDP results, although up from the last reading, were as expected at 3.1 percent. As such initially sterling started on the back foot dropping off against most of the major pairings. The only currency, as always it seems recently, the pound fared okay against was the ailing euro, which wasn’t helped by lower than forecast German IFO business climate and current assessment figures. With only low key US data at lunchtime that was it for the ecostat and trading for the rest on Friday was range bound. 

So onto the last few days of July and what lies ahead for the pound?

Well not a lot to look out for data wise as we only have mortgage figures on Tuesday for the UK so its going to be a week led by stats form around the world which will decide the fate of sterling. Will sentiment stay on our side or will it continue to filter away as the chances of UK interest rate rises this year are seemingly slipping away. With that in mind, you might wish to consider forward buying any currency required in the coming months just in case investors decide to put their money elsewhere and start to sell off all the sterling they’ve been buying up of late – you wouldn’t want to miss the boat at securing at multi year highs!

Here are the highlights for the week ahead:

Monday

• US services PMI & pending home sales 

Tuesday

• UK mortgage approvals & money supply
• US consumer confidence

Wednesday

• EU consumer confidence, economic sentiment indicator & business climate figures
• German inflation 
• US GDP
• US Federal Reserve interest rate meeting, policy statement &press conference

Thursday

• EU & German unemployment
• Canadian GDP

Friday (1st August)

• UK & EU manufacturing PMI
• US Non farm payrolls & average earnings

Have a good end to the month readers and be sure to contact a member of the CI team to discuss any upcoming transfers.