bank of england

Sterling remains solid

5th February 2018 Market Update

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?? GBP – Early last week the pound struggled a little. There was a lack of data and what looked to be profit taking affecting GBP early in the week. Through Tuesday and Wednesday the pound maintained its strong position against both the euro and dollar, manufacturing figures hit a seven year low on Thursday which the pound took a knock for but regained losses come Friday morning.

Today we have UK services figures and later this week we have the BoE interest rate decision on Thursday, along with the inflation report. Industrial and manufacturing production will follow on Friday.

?? EUR – Eurozone growth hit a 10-year high last week meaning the euro pushed higher against the dollar. Inflation came out as expected fuelling potential delays in interest rate hikes. Manufacturing figures came in line with expectations.

Retail sales from Europe are out today and they are expected to fall slightly. Draghi is also due to speak this afternoon. There is no top tier data for the rest of the week.

?? USD – Quiet in terms of data for the US at the start of last week. No rate rises, as expected, in the US but they have potentially paved the way for one in March. The rest of the week was quiet.

Services PMI is expected to remain the same today, ADP employment change is due tomorrow. Again, that’s pretty much it for the US this week.

 

Key Announcements

?? EUR
10:00am: Retail sales – expected to fall slightly
16:00pm: Draghi’s speech

 

Summary: Sterling will be hoping to hold its strong position this week with UK services figures out today and the Bank of England interest rate decision on Thursday.

 

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Darren Kilner

Darren Kilner

Darren is Head of Dealing at FairFX. Darren lives and breaths FX, his Mastermind topics are G8 currencies and economic forecasts.

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