Sterling was hit yesterday by new Bank of England data showing a slowdown in the UK recovery. BoE data showed that lending to UK businesses fell for the fifth month in July and home loan approvals are at the lowest in more than a year. Although there is quite a lag with some of this data investors are very jittery about the UK and the bad news has brought about new calls for more quantitative easing which would be bad for the pound at least in the short term.
The US also had some house market data out yesterday which came in slightly worse than expected and points again to a slowdown in the recovery in the US.
Today we have a reasonable amount of data out starting with the UK Public Sector Net Borrowing figures this morning and as this is the only data out today for the UK and very little out over the rest of the week there is little that can help boost the pound and we may see a bit of a poor performance for Sterling this week.
We then have some more US housing data out this afternoon but the highlight for the day by far will be the Fed’s interest rate decision tonight which could shed some more light on the possibility of an extension of the QE program.
Posted in Daily Market News on May 30 2014
Little data out on Friday changed investor sentiment going into the weekend with US inflation coming in unchanged at 1.1%. The Reuters Michigan Consumer Sentiment Index also came in quite weak on Friday afternoon at 66.6, lower than the expected 70.3 and shows a drop in consumer confidence in the...VIEW FULL ARTICLE
Posted in Daily Market News on Sep 20 2010 by admin