Pound Sterling (GBP) Forecast to be subdued until midweek due to lack of data releases

The Pound is forecast to be relatively muted against its major peers at the start of the week due to a lack of domestic data releases and as market sentiment remains under pressure from event in Ukraine.

Sterling is likely to make little movement against the Euro and US Dollar on Monday and Tuesday due to a lack of data out of the UK. The currency will be at the mercy of international factors and data released from the Eurozone and USA.

Sterling did manage to firm slightly against the Euro on Monday after the single currency was weakened by the publication of weaker-than-expected inflation data which increased pressure upon the European Central Bank.

The data showed that consumer prices in the Eurozone grew by a yearly figure of 0.7%, down from the 0.8% recorded in the first month of the year. The figure was below the initial estimate and expected figure of 0.8%. The report shows that the rate of inflation in the Eurozone has been below 1% for the past five months.

Against the US Dollar the Pound could soften later in the session if Monday’s industrial and manufacturing data comes in strongly. If the data disappoints Sterling could make some ground but movement is likely to be limited.

The Pound will experience volatility Midweek due to the release of the latest UK unemployment data and the publication of the monetary policy committee meeting minutes. The jobless rate is forecast to remain at 7.2% but any surprise decline will boost the Pound and send it higher against its rivals.

Aside from the data released on Wednesday the rest of the week is likely to be quiet for the Pound, again due to a lack of domestic data releases.