Sterling strength continued last week following the surprising news that UK data rose above expectations. The recent data throughout the past couple of weeks has contributed massively in easing concerns of an immediate post Brexit shock to the economy.

We should expect to see rising tension in the newly-formed Cabinet today following PM Theresa May’s abrupt shut down of Boris Johnson’s plan for a points-based immigration system, stating that it is not the “silver bullet” that will solve the nation’s migration concerns.

August services PMI and Carney’s appearance may impact Sterling

To start the week, looking at the day ahead, the August services PMI is a key release for the day, bearing in mind Sterling’s current level of sensitivity. Sterling could see some further strength if this data release follows the recent trend of being above forecast; both the manufacturing and construction industries have recovered well after the Brexit and this index is also expected to rise.

On the other hand, we can also expect to see Sterling put through its paces this week with Bank of England governor, Mark Carney’s appearance before the Treasury Select Committee. During the press conference following the August inflation report, Carney did suggest that should they need to, they are more than ready to commit to further easing policies; therefore, it will be interesting to see how Carney’s comments correlate back to this, if at all.

To request an instant quotation on a currency quotation please click here

Article by Sam Budd, Corporate Dealer
* Information courtesy of Currencies Direct
The contents of this report are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. Currencies Direct cannot be held responsible for any loss or damages arising from any action taken following consideration of this information. This article was written Currencies Direct.