Sterling continues to hover around the 1.17 mark against the euro and 1.39 against the US dollar. The first half of the week’s UK economic data is quiet with all eyes on the Bank of England’s Monetary Policy Report due on Thursday. In the last week GBPEUR has been down 0.19%. GBPUSD is up 0.2% and EURUSD is up 0.38% hitting 1.19 for a short period of time.
The US manufacturing sector continues to perform well. US Factory Orders rose by 1.5% in June against an anticipated 1%. This is up again from the 2.3% we saw in May making that positive growth thirteen of the last fourteen months.
At the Bank of England meeting on Thursday we are unlikely to see any significant changes to policy with interest rates and quantitate staying as they are. However, there is a sense of optimism with the recent fall in Covid cases combined with the UK’s more robust recovery that the Bank of England could be amongst the first major central banks to scale down its stimulus support. Interest rates are set to remain the same, but we may get a better idea of when in 2022 the change will come.
Another relatively quiet day for economic data today with the Euro Zone Retail Sales jumping out as one to keep an eye on. 4.5% growth expected down from 9% the previous month.
Have a great day.
Josh Saunders, Senior Relationship Manager.
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