British Pound Struggles To Keep Above 2.0

The British pound is stronger across the board today despite the lack of economic data. The price action is more a reflection of dollar weakness and Euro underperformance than pound strength.

The British pound has had trouble staying above the 2.0 mark and next week’s UK data is not likely to help much. We are expecting mortgage approvals, house prices, consumer confidence, consumer lending, money supply, manufacturing, construction and service sector PMI. All of the housing market data should be positive and the market expects. Consumer confidence should hold steady while we could see mild improvements in service PMI. There should not be much of a surprise in terms of UK data and most of the releases will support the need for another rate hike. Whether or not the GBP/USD will be able to break and remain solidly above 2.0 will be determined by US data.