The pound continued its upwards trajectory yesterday and briefly touched multi-year highs against both the US Dollar and the euro.
This was partly helped by comments yesterday from the Bank of England governor ‘Andrew Bailey’, that UK interest rates will come down, but that progress in this direction will be slow.
Last week, the Bank of England left its interest rates unchanged at 5 percent, whilst the FED cuts its interest rate down by 50 basis points.
There are expectations that the pound can retain its upside momentum, as long as the UK remains in the slowlane when it comes to interest rate cuts.
In terms of data today, we have the French consumer confidence index, followed by the New Home Sales for the US.
Tomorrow, we have the US durable goods, employment and growth figures. All sets of Us data will be closely watched and will clearly affect the dollar should anything disappoint.
On Friday, markets will turn their attention to the US core PCE inflation figure, which is the Fed’s preferred inflation gauge.
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