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Posted July 1st, 2013 by Charles Purdy

Difficult week for sterling as Carney starts at the BoE | Smart Daily Currency Note

GBP/EUR – 1.1663

Sterling had a difficult week last week and continued to lose ground on Friday in spite of any significant data being released. This week we have a whole raft of UK data released, a Bank of England meeting and the arrival of the Mark Carney, quoted on the radio this morning as a financial “rock star”, as the head of the Bank of England. Today we will see the release of Purchase Manager Index (PMI) figures from the manufacturing sector, tomorrow construction, and on Wednesday services figures. Forecast expectations are all positive, but we wait to see whether it’s enough to reverse the trend of sterling’s weakness. On Thursday we will see Mark Carney in action as Governor of the Bank of England for the first time, though no change is expected when he announces interest rates and asset purchasing facilities for the month. Of more interest to most traders will be the minutes from the first meeting under Carney, released 2 weeks later. July is starting with a bang so please call in today for the latest on sterling.

The euro held fairly steady at the end of last week, dropping off against the US dollar late in the day on Friday but mainly as a result of dollar strength rather than particular euro weakness. This week promises to be an interesting one, with manufacturing data coming out of Spain and Italy on Monday and Wednesday. Then on Thursday we have the European Central Bank meeting. Markets will be sensitive throughout, vulnerable to any surprise news or suggestion that the ECB could drop interest rates further over the coming months or undertake a programme of quantitative easing. Uncertainty is the name of the game at the moment so expect volatility to rise in anticipation of Thursday’s meeting. Get in touch for the latest rates.

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