BofE951121

Pound may follow the euro

 
     The beginning of the week was very successful for the euro. The union currency continues to using support from the results of election in France, exactly the decline of political uncertainty.
     Besides that, the European currency is supported by incoming statistics from the Eurozone. Yesterday’s data showed the growth of the trade balance, GDP coincided with the previous estimate, and the index of Economic Sentiment from ZEW was much higher than the past values.

     From the UK, also were out positive news. The Consumer Price Index rose to 2.7% with a forecast of 2.6%. Expected that the Producer Price Index would drop to 0.2%, but the index remained at the previous 0.4%. Nevertheless, the pound sterling couldn’t show a significant strengthening against the US dollar. At the moment GBP/USD pair updated high of Monday, after which sharply fell and finished the trading day not much higher than the opening price.
 
     Today, the British currency has a chance to more significantly strengthen its position against the US dollar. The data of unemployment and wages in the UK, according to forecasts expected in the green zone. Perhaps a set of positive statistics will help the British pound feel more confident.