Difficult week for sterling as Carney starts at the BoE | Smart Daily Currency Note
GBP/USD – 1.5208
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 US dollar was the high flyer last week, gaining 0.8% against the euro as markets reacted to talk of tapering out monetary stimulus programs. The chatter is bound to continue into this week, with employment data released on Wednesday likely to deepen speculation as the labour market has long been linked with monetary policy stateside. Also released on Wednesday is non-manufacturing PMI figures, ahead of the key Non-Farm Payroll data on Friday. A lively week ahead, so call your trader to find out where we stand right now.