The Sterling traded in a sideways pattern on Friday and finished off the week holding onto most of its gains. There was little economic data from the U.K. before going into the weekend and there will little today. Tomorrow Public Sector Borrowing figures and Mortgage Approval numbers will be published. The GBP has enjoyed a few weeks in the sun and this has come on the heels of better sentiment due in no small measure to the U.K. government’s strong austerity measures. However, the question is how long can this policy can muster good ‘tidings’ for the Sterling and what the real ‘math’ will show in the midterm. Concerns persist regarding growth prospects, and like its major counterparts there seems to be no quick fix in sight. On Wednesday the BoE will release its MPC Monetary Policy Statement, but until then the GBP may find itself moving entirely under a risk appetite/ adverse scenario.
Written by bforex.com
