GBP:
The pound strengthened against the euro yesterday as investors look for
clues from projections due in the central bank’s Inflation Report as to when it
will begin raising interest rates.

According to analysts at BNP Paribas, if we continue to get an indication from
Carney that rate hikes are on schedule for November, then there’s scope for
sterling to rebound this week. The Inflation report and Carneys speech is
released on Wednesday. 

GBP:
The pound strengthened against the euro yesterday as investors look for
clues from projections due in the central bank’s Inflation Report as to when it
will begin raising interest rates.

According to analysts at BNP Paribas, if we continue to get an indication from
Carney that rate hikes are on schedule for November, then there’s scope for
sterling to rebound this week. The Inflation report and Carneys speech is
released on Wednesday. 

Mortgage lending rose 6% in June to £17.9bn, according to Bank of England data.
This is 20% higher than June last year. Lending is driven by house buyers,
rather than people re-mortgaging their houses, says the Council of Mortgage
Lenders. Lending to first-time buyers increased 19% on June last year.

Scottish First Minister Alex Salmond commented yesterday on Scotland adopting
the UK Pound if there is a vote for independence. He said nothing will
stop an independent Scotland from using  UK Pound and dismissed UK
opposition to a currency union.

USD:
Stanley Fisher a member of the Federal Reserve stated yesterday in a speech
 that the global economic recovery has been disappointing and could signal
lower growth in the long run. He states that growth in many advanced economies
have underperformed expectations of growth as economies exited from recession.
This has led to repeated downgrades of forecasts for short term growth.

Key Announcements:

10:00 BST- EUR -ZEW Survey Economic
Sentiment (Aug) expected to decrease to 41.3

19:00 BST – USD – Monthly Budget statement (July) expected to
show higher deficit of $98 Billion

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