Sterling starts the week 1% above last Monday against the euro and a little more than that against the US dollar. Economic data and Brexit trade talks will determine whether that continues through the week, although the evidence is hopeful.
Some signs of recovery were in the air over the weekend, as vapour trails disturbed the clear blue skies over southern England for the first time in nearly four months.
It’s certainly a big week for data, with GDP, Balance of Trade and a whole host of production and construction output tomorrow, the inflation rate on Wednesday, unemployment, earnings and consumer confidence on Thursday.
Before all that, governor of the Bank of England Andrew Bailey will be making a couple of speeches today, so the markets will be watching out for any interesting commentary.
News on trade talks should emerge at the end of the week so it could be a bumpy ride.
