The Sterling had another day of rather good trading as it gained against the USD. The RICS House Price Balance figures turned in a better than estimated figure of 22% compared to the forecast of 16%. Today the Bank of England will release plenty of inflation reports and the estimates are calling for rather modest results. The CPI is expected to produce a number of 3.5%. The rise of consumer prices are a concern taking into context that the U.K. economy is still very much in the midst of a challenging economic environment one that includes stagnation and the prospects of tough austerity measures. The GBP remains under the clouds of the EUR Sovereign Debt centric shadow, but its influence has not been quite so extreme the past week. Tomorrow Unemployment data will be published along with Claimant Count Change figures. The Sterling has enjoyed a relatively good performance for a few sessions and traders may find opportunistic ranges if cautious markets continue today.
Written by bforex.com