Light week ahead on the data front

Sterling weakened against both the dollar and euro last week, to under $1.25 and 86p respectively, as the Bank of England (BOE) looks set to leave interest rates on hold for an extended period of time. It warned that ‘the Brexit journey is really just beginning’ and that ‘there will be twists and turns along the way’

In its latest ‘Inflation Report’, the BOE revised up its growth forecast to 2.0% this year from 1.4%, while inflation is expected to peak at around 2.8% by mid-2018

The euro rose to $1.08 against the dollar for a time last week following comments by a trade adviser to President Trump that Germany is benefitting from a ‘grossly undervalued’ currency

The latest US jobs report showed payrolls rose by 227,000 in January but wage growth slowed to 2.5% year-on-year

Light week on the data front with UK trade statistics & industrial production and US consumer confidence the main releases at the end of the week