By TraderVox.com
Tradervox.com (Dublin) – The sterling pound closed the week almost a cent higher than the previous week, following some strong releases at the end of the week. The strong Manufacturing production and industrial production reports came in above the market expectation hence boosting the demand for pound as a safe haven. However, the pair has pared its gains at the start of trading on Monday, after Rightmove HPI report showed that the index fell to the least in eight months. The index fell by 1.7 percent.
Other events that will shape the trading of the cross include the CPI data that will be released on Tuesday at 0830hrs and the BOE governor Mervyn King speech thirty minutes later. The CPI data has shown a downward trend in the recent releases and a slight decline is expected this time. The Bank of England Governor Mervyn king will speak at 0900hrs where investors will be keen on sentiments and directions given by the governor.
On Wednesday, the Claimant Count Change and the MPC Meeting Minutes will be released at 0830hrs. The claimant count change disappointed last month as the figure came out stronger than expected. The market expects the data to stand at 7,400 while the unemployment rate is expected to remain stagnant at 8.2 percent. The BOE Meeting Minutes will show the voting patterns during the BOE recent rate decision and the Asset purchases Facility program.
There will be one important event on Thursday and another on Friday where the Retail Sales data will be released on Thursday and the public sector net borrowing will be on Friday; both reports will be released at 0830hrs GMT. The market estimates a drop of 0.6 percent in the July reading of the Retail sales. This indicator is followed closely by investors as it gives the trend of most important gauges of consumer spending. The Public Sector Net Borrowing is expected to came in at 12.5 billion pounds for the month of July.
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