The Pound came off Euro year highs in a hurry yesterday. Having popped going into the weekend the gains were rapidly given back in early trading. There was little to support the moves so it looks like technical trading may have been the cause.
This morning saw some positivity for the UK economy with better than expected unemployment data. Analysts had expected the rate to be up to 4%, but came in at 3.8% instead. Average earnings were also ahead of expectations at 7.2% annualised growth.
Today sees some strong news from the US and the UK. First there's inflation numbers out from the States. Analysts are predicting annual growth of 4.1%. This will have a big effect on Dollar rates if it's off the expected number. A higher reading should push the Dollar up versus the Pound as it would lean on the FED to increase interest rates. Following this there's a speech by the Governor of the Bank of England, Andrew Bailey.
Heading into tomorrow eyes will remain on the UK. At breakfast time there's a slew of information. Monthly GDP, trade balance, industrial production and manufacturing production. The bumpy Pound may well continue.
US: 13:30 Inflation Data
UK: 15:00 BoE's Andrew Bailey Speech
UK: Wednesday 07:00 Monthly GDP Number
UK: Wednesday 07:00 Trade Balance
UK: Wednesday 07:00 Industrial Production
UK: Wednesday 07:00 Manufacturing Production
As ever we look forward to keeping you in the loop and look out for our next update.
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