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Retuning Momentum On The Cards For Sterling

Retuning Momentum On The Cards For Sterling

The pound starts the new week just below multi-day highs against both the euro and the dollar amidst a revival of buying interest, with some market experts predicting a possible move higher over the coming days and weeks.

Upside momentum returns to the UK currency amidst signs that the economy should record strong growth in the third quarter with the Bank of England also on track to raise interest rates before its European and U.S. counterparts. Sterling additionally recorded a two-week high against the Euro on Friday, a turnaround in fortunes for the pound having previously hit a seven-week low just two days prior, especially after BoE Governor Bailey commented the August Monetary Policy Committee voted 50/50 on whether basic conditions for a rate hike had been met.

In level terms, the GBP/EUR currency opens around the 1.1720, GBP/USD just above the 1.38 mark and the EUR/USD at the 1.1780.  

Data wise, ECB President Lagarde speaks on Thursday as well as Core CPI and retail figures coming out from the US additionally and Tuesday and Thursday. 

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