The British pound has strengthened against all of the major currencies except for the US dollar which indicates that the strength of the greenback is the primary reason for the GBP/USD’s drop towards 3 month lows.
With only secondary releases due from the US next week, UK economic data should return to the forefront and drive the fluctuations in the British pound. Consumer prices and retail sales are expected along with the minutes from the most recent monetary policy meeting. We believe most of these reports will be pound bullish as inflationary pressures in the UK continue to grow.