The euro demonstrated a steady growth against the sterling last week. It opened at 0.8721 pounds last Monday, and it reached 0.8894 pounds closing price on Friday. This week started even higher – at 0.8901 and is currently at 0.8906 and going upwards.
Economists say that this Monday, the pound fell to its weakest point for the past seven months against the euro as a result of a drop in mortgage approvals to the least since March last year. It is also speculated that the Bank of England may soon have to start buying assets.
Prelim GDP q/q, 9:30 a.m. GMT. The index is of a high impact as it is the broadest measure of economic activity and the primary gauge of the economy’s health. Economists say the index will drop from 1.2% to 0.4% this month.
MPC Member Posen Speaks, 5:00 p.m. GMT. The External BOE MPC Member Adam Posen is due to speak at the Economic and Financial Institutions Research Group, in Belfast.
MPC Member Bean Speaks, 10:20 a.m. GMT. The BOE Deputy Governor Charles Bean is due to speak at the Annual Statistic User Forum Conference, in London.
Nationwide HPI m/m, 7:00 a.m. GMT. HPI=House Price Index. The index measures the change in the selling price of homes with mortgages backed by Nationwide. It’s of a high impact as it’s a leading indicator of the housing industry’s health – rising house prices attract investors and spur industry activity. Experts say the index will drop to -0.3% from the current 0.1%.
Inflation Report Hearings, tentative. The hearings are also of a high impact as BOE MPC members vote on where to set the nation’s key interest rates, and their public engagements give clues regarding future monetary policy.
CBI Realized Sales, 11:00 a.m. GMT. CBI=Confederation of British Industry. The CBI sales are a leading indicator of consumer spending because retailer and wholesaler sales are directly influenced by consumer buying levels. The forecast for this month shows a drop to 44 from the current 49.
GfK Consumer Confidence, 12:01 a.m. GMT (Friday morning). It’s an important index because financial confidence is a leading indicator of consumer spending, which accounts for a majority of overall economic activity. The consumer confidence this month, however, is about to drop even further – from -20 to -22.
Net Lending to Individuals m/m, 9:30 a.m. GMT. The index measures the change in the total value of new credit issued to consumers. The forecast this month indicates a drop from the current 1.5B to 0.9B, which will not be good for the currency.