Today is a quiet start to the week, with only the EU Industrial Production and NY Fed Empire State survey due.
Last week the pound touched a 2-year high against the euro and hit a 9-month high against the dollar.
The pound has gained strength following the election results and from a lot of uncertainty in Europe and the US.
Later in the week, we have retail sales, inflation and employment figures which could determine whether the pound continues its upwards trajectory.
Wednesday’s inflation figures will be followed by Thursday’s wage numbers, which will play a key role in whether the Bank of England cuts interest rates at its next policy meeting at the beginning of August.
Elsewhere this week we have the German ZEW confidence & US retail sales due.
This Thursday the ECB policy announcement will be closely watched to see if they take any action regarding interest rates. The comments afterwards will as always garner a lot of attention.