Could sterling finally find support after weeks of losses?

Sterling finally found support at the end of last week, unwinding some of the recent losses as confidence in the strength of the Eurozone economic recovery waned. Disappointing UK retail sales data showed a contraction of 1% throughout December, but sterling was still able to gain ground across the board as this data was largely overlooked.

Some better-than-expected economic data last week gave the British currency signs of finding its feet for the first time in 2016 so far. We expect a quiet week this week’; Bank of England (BoE) Governor Mark Carney will kick things off tomorrow when he testifies before the treasury select committee. Having spoken at length about the risks facing the UK’s economic recovery last week, investors will be interested to hear any further insight into monetary policy. Aside from this, Thursday’s preliminary Gross Domestic Product (GDP) figures will provide the earliest look at economic growth throughout the previous quarter, and as such carries significant weight throughout the markets.