The Sterling continued to outperform on Tuesday as it gained solidly against the USD. The CBI Realized Sales reading produced a report that far exceeded expectations yesterday with an outcome of 33, beating the forecast of 2 by a wide margin. Today BoE Governor Mervyn King will talk about the state of the U.K economy and its prospects and investors will monitor this testimony carefully. Tomorrow the Nationwide HPI will be released along with Net Lending To Individuals numbers. The U.K. government has taken strong austerity measures recently, but questions remain about its prospects for growth and a debate still rages about the impact that higher taxes will have. The GBP has gained enough the past month to put itself back within striking distance of its long term range against the greenback. Risk sentiment will likely continue to be important the remainder of this week.
Written by bforex.com
