Sterling a Mixed Bag As UK Debt Surprises

By Simon Eastman

Yesterday we saw UK debt levels reported, showing UK debt was not quite as bad as previously reported in the previous months. We saw public borrowing figure rise to £4.3 billion in July, whereas the ONS had reported the figure could rise to as much as £6 billion.

This gave the pound the steam to push higher against the single currency euro, reaching levels not seen in months. This was helped by a lack of EU data releases, plus the fact markets are eyeing the US dollar again as a safe haven currency, which saw cable a whole cent lower as markets came to a close. This was despite poor US home sales figures in the afternoon.

Wednesday gives us a little more meat on the bones as we see a raft of data releases across the globe, kicking off with German manufacturing and services PMI, followed by the same for the EU, the UK and after lunch, the US. Anyone with a Canadian Loonie requirement should make a note of retail sales released over lunch. We finish with EU consumer confidence early afternoon and US new home sales data to round the day off.

With a busy day on the markets data wise, the markets could be volatile, so make sure to contact one of the team at your earliest convenience for some friendly guidance.