Last week wasn’t any different for the euro against the sterling, either. Again, it marked a drop from 0.8314 to 0.8178. The biggest fall was also on Wednesday, August 11, when the pair opened at 0.8312, but after a huge jump South, it went to 0.8215. On August 13, it stopped at 0.8178 – the lowest for the week.
Monday, August 16 gave a fresh start for the pair as it opened this week at 0.8184, and is currently trading at 0.8231. Similar to euro vs. dollar, however, the market is quite sensitive at the moment, and is hard to say a positive sentiment is currently present.
CPI y/y, 9:30 a.m. GMT. The Consumer Price Index measures the change in the price of goods and services. It is said to slightly fall from 3.2% to 3.1% this month, which would be a quite insignificant drop if it comes true.
Core CPI y/y, 9:30 a.m. GMT. This is the same index as the above one, but it has a milder impact because the overall CPI is the central bank’s mandated inflation target. It is also expected to drop by 0.1% – from 3.1% to 3.0%.
BOE Inflation Letter, tentative. Bank of English Inflation Letter gives an insight into the future of monetary policy.
MPC Meeting Minutes, 9:30 a.m. GMT. Monetary Policy Committee Meeting Minutes is a detailed record of the BOE MPC’s most recent meeting which gives an in-dept insight into the economic conditions. The vote is reported in an ‘X-X-X’ format, as the first number is how many voted to increase rates, the second one is how many voted for a rate reduction, and the third is how many voted to hold rates. This month it is expected to be 1-0-8, as the previous one was 1-0-7.
Thursday is expected to be a big day for the British pound. Let’s see what’s coming up.
Retail Sales, 9:30 a.m. GMT. The index measures the change in the total value of inflation-adjusted sales at the retail level, and it accounts for the majority of overall economic activity. It is expected to drop from 0.7% to 0.4% this time.
Prelim Mortgage Approvals, 9:30 a.m. GMT. It measures the number of new mortgages approved for home purchases, and is a leading indicator of housing market demand. It is expected to drop to 47K from the current 48K.
Public Sector Net Borrowing, 9:30 a.m. GMT. This is the difference in value between spending and income for public corporations, the central government, and local governments. A huge drop is expected this time – from 14.5B to 5.1B.
CBI Industrial Order Expectations, 11:00 a.m. GMT. Confederation of British Industry Industrial Order Expectations. This is a survey of about 550 manufacturers which asks respondents to rate the relative level of order volume expected during the next 3 months. It is expected to go up a little this month – from -16 to -14.