Data To Drive Further Sterling Gains
The Pound to Euro exchange rate ended last week on the front foot and up from a seven month low but could likely run out of steam should parliamentary testimonies from Bank of England (BoE) and a deluge of UK economic data fall short of expectations.
Pound Sterling had struggled against the Euro throughout much of last week as stock markets and some commodity prices slumped in response to escalating investor concerns about the outlook for the global economy. The Sterling exchange rate did stabilise however, after Ukraine’s national gas pipeline operator stopped flows from Russian to Europe and following the Kremlin’s decision to ban sales of gas to a handful of important European firms.
In level terms and as trading gets underway this morning, EUR/USD continues to operate at the 1.04 threshold whilst the GBP/EUR open circa 1.1750. Cable (GBP/USD) is changing hands near the midpoint of the 1.21-1.22 range.
Datawise and turning to the week ahead, a busy data schedule. The latest inflation, retail sales (April) and consumer confidence (May) prints for the UK are due alongside a slew of labour market data also features. Concerns over UK-EU tensions in relation to the NI Protocol may additionally be a point of focus for sterling watchers whilst in the US, retail sales and industrial production (April) are the main highlights.