British Pound Extends Gains Ahead of Busy Data Week

Despite warnings from HSBC that “hot money” could be exiting the UK in the coming months as growth slows and funds lose confidence in the country?s economic management, the British pound continues to rise. There are a lot of UK economic data due out next week including producer prices, industrial production, retail sales and the trade balance.

The market will be looking to these numbers for more clarity on whether the Bank of England will be lowering interest rates this year. Bank of England Governor King is also scheduled to speak on Monday. If he remains hawkish, the GBP/USD could take out 2.05.
[B]Written by Kathy Lien, Chief Currency Strategist for[/B]