The Sterling Show

23 June, 2014

Matthew Boyle

Last week remained another positive one for the pound – after gains early in the week against both USD and EUR it flagged slightly during mid-week trading, losing some of the gained ground, around half a cent against EUR and almost a cent against USD. However by the end of the week’s trading GBP was back to strength despite slightly poor retail sales on Thursday. With GBP sentiment riding high and news that the FED cut its growth fore cast from 2.8-3% down to 2.1-3% this year the pound pushed on and reached a new 5 year high against the greenback. Whilst against the EUR the by the end of the week the pound had clawed back much but not all of the lost ground, still close to a 2.5 year high though for those buying the single currency.

Indeed Sterling sentiment is riding high at present which will be interesting this week as we have one of the quietest weeks in some time in the way of data of note. Despite USD GDP on Wednesday, for the majors it seems like it is the “Sterling Show”. And so with GBP sentiment riding high and with an absence of data the majors can fight back with further positive data from the UK could see it continue its onslaught, particularly against the single currency which has no data of note.

However, take note as should GBP data be weak, this could easily unbalance it given its recent run of good news and we could very well find recent gains eroded and trading levels shift back to where last week’s trading started.


08.30     GBP       Inflation Report Hearings


12.30     USD       GBP Annualized (Q1)


09.30     GBP       BoE Mark Carneys Speech

23.30     JPY         CPI data (assorted)


08.30     GBP       GDP (YoY and QoQ) Q1

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