At the end of last week, the pound was on course for its biggest monthly rise against the dollar in a decade. This was mainly driven by dollar weakness. The pound was also strong against the euro at the end of last week and has maintained this strength at the beginning of this week.
Movements driven by sterling itself continue to be subdued on the absence of Brexit news. However, reports that a new timetable has been set out for the next rounds of negotiations has provided some optimism. The timetable shows that the final round will take place at the beginning of October in Brussels.
The Bank of England are due to make their latest decision on interest rates this week, which could have an impact on the pound. A rate cut isn’t expected. However, any views on how the economy is faring in the midst of the coronavirus crisis could move the pound. It’s also thought unlikely that the Bank will add to their current stimulus package.
Manufacturing PMI data is due later this morning, which will be followed by Services and Composite PMI’s on Wednesday. These should give a good indication of how the UK economy fared throughout July.
