Without much to report on in terms of data releases out yesterday, GBP still managed to maintain dominance over its peers with gains seen against both EUR and USD. If was more likely than not the events of elsewhere that shored up GBP strength. Against the dollar, the pound hit around 1.49 interbank and closed the day about that level. Versus the euro, the pound fell just below 1.38 by the end of the day. We will see the BoE interest rate decision today which should keep punters entertained. There are also asset purchasing facility numbers out today – if we see weakness in either of these two readings then GBP is likely to drop off in strength.
There wasn’t much released either from Europe yesterday aside from seeing German factory orders fall short of expectations, and France’s trade balance contracting in Feb. What we will see today is the deadline for Greece who are supposed to pay back their €450M load to the IMF. The outcome will certainly have some sort of impact on EUR – keep an eye on things.
With the US dollar having lost out this week already, keep an eye open for continuing and initial jobless claims released today. There will also be some notable releases next week as well as inflation readings on Thursday.
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