The Sterling has not done poorly the past week taking into consideration the fall that its nearby counterpart, the EUR, has suffered against the USD. While the GBP has lost some value it has maintained some stability too. CPI data will come from the U.K. today and like all nations it is experiencing inflation with certain important core groups such as food and fuel. The question is if inflation is much of a danger from other areas, having said that rising food prices certainly can affect the attitude of consumers and cause them to restrain spending on other goods. The U.K. continues to turn in rather mixed economic data and it has shown little signs of achieving strong growth. This is no different than many other major economies, so the question is if the U.K. government austerity policy that has been instituted can continue to find stability if growth remains hard to grasp. The Sterling is in an interesting consolidated range.
Written by bforex.com
