Shine taken off Sterling on economic data worries

Sterling took a hit yesterday against most of its major rivals as investors look towards tomorrow’s GDP number from the UK.Shine taken off Sterling on economic data worriesThe estimate is for 0.2% growth over the last quarter, but traders are wary that with the recent weak figures from the UK economy, the number could be worse than the expectations.

The Pound has been buoyant recently and trading near 5 months highs though if the data does come out lower than the estimate, we could be set for a new downward trend for Sterling.

The US has had raft of data out recently with yesterday’s durable goods numbers coming in better than expected. They showed a 4% MoM increase in the number of new orders in the US which is a massive boost to the struggling economy.

The main focus for this week is tomorrow’s release of the US GDP followed by FED chief Ben Bernanke’s speech.

The expectation is for 1.1% growth in the most recent quarter from the GDP figure which would be yet more positive data for the States.

As we posted yesterday, Bernanke’s speech, coming from Jackson Hole Wyoming, he will be delivering key points for the US recovery which will lead onto the rest of the World.

The markets are looking for the Chairman to signal fresh steps to prop up the US economy with potentially more Quantitative Easing measures.

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