Movement within EURGBP

A fresh week brings us some interesting data on the currency markets. Last week delivered us the surprising gains for the Pound, all brought by non-essential data. We started off in Germany with the Gfk consumer confidence survey which came in lower than expected. As Germany is the “powerhouse” of the single economic area, this is seen as an indicator to the general sentiment in the zone Looking across the pond confidence is growing with the US Government Debt Crisis thawing relations with investors expecting a monetary tightening from the Federal Reserve. Respectively the EUR/USD tipped the 1.3500 handle for the shared currency backed by a strong set of manufacturing PMI from the Eurozone. Deeper into the week, Thursday proves to be a day of great interest on the markets with a raft of data set for release. The Bank of England announces its monetary policy decision on Thursday with no change to policy being expected from the BoE. The Bank of England is holding the ground with Mark Carney unlikely to hinder the process with change until the growth in the job sector. Still our European counterparts release its monetary decision on the same day, Draghi as always expected to show a clam but cautious tone on the Eurozone recovery. So after a flurry of data we are left to breakdown the UK construction and service sector PMI and with the data showing already a drop market analysts are cautious to say it is backing a strong Pound.