Outlook for the British pound sterling in the week 17-21 June

Where the pound is as we approach the end of play in London

The pound dollar exchange rate is at 1.5666.
The pound euro exchange rate is at 1.1752.
The pound Australian dollar rate is at 1.6251.
The pound New Zealand dollar rate is at 1.9308.

Please be aware that the above quotes are taken from the wholesale markets and your bank is able to add their own spread at will. However, an independent FX provider will actively seek to undercut your bank's offer, thus delivering you more currency. Please find out more here.

The week that was

An attempt at 1.18 was also attempted owing to a strong improvement in the UK's labour market.

We also witnessed some of the best exchange rates in years for those looking to sell sterling and buy the Australian dollar, New Zealand dollar and South African Rand.

Outlook for the British pound next week

Monday @ 00.01 - The Rightmove House Price Index (last month's reading was 2.5%)

The index "provides a sample of residential property prices in the UK. It shows the strength of the UK housing market, which can be considered as the economy as a whole due to property prices' sensitivity to changes in the business cycle. Generally speaking, a high reading is seen as positive, or bullish for the GBP, while a low reading is seen as negative, or bearish," say Alpari UK.

Tuesday @ 9:30 - Core Consumer Price Index (YoY) (May)

Tuesday is the day for inflation data - a whole stack but it is the headline Core Consumer Price Index (YoY) (May) and Consumer Price Index (YoY) (May) that will be of importance for the British pound.

Estimates for the Consumer Price Index is 2.6 pct - up from last month's 2.4 pct.

Generally, a high reading is seen as positive (or bullish) for the GBP, while a low reading is seen as negative (or Bearish).

@ 10:00 - The Inflation Report Hearings. The Treasury Committee is appointed by the House of Commons to examine the expenditure, administration and policy of HM Treasury, HM Revenue & Customs, and associated public bodies, including the Bank of England and the Financial Services Authority.

Wednesday @ 9:30 - The Bank of England Minutes.

"The minutes of the BoE MPC meetings are published two weeks after the interest rate decision. The minutes give a full account of the policy discussion, including differences of view. They also record the votes of the individual members of the Committee. Generally speaking, if the BoE is hawkish about the inflationary outlook for the economy, then the markets see a higher possibility of a rate increase, and that is positive for the GBP," explain Alpari UK.

We don't expect this month's letter to shake the markets to any extent owing to the fact that this was outgoing Governor King's last meeting.

Once Mark Carney takes over the Minutes will be keenly awaited by currency traders.

Thursday @ 9:30 - The Office for National Statistics releases their retail sales data. Can the UK economy continue to surprise us in a positive fashion?

"The retail Sales released by the National Statistics measures the total receipts of retail stores. Monthly percent changes reflect the rate of changes of such sales. Changes in Retail Sales are widely followed as an indicator of consumer spending. Generally speaking, a high reading is seen as positive, or bullish for the GBP, while a low reading is seen as negative or bearish," says Alpari.

Expectations are for an increase of 0.6%.

Friday @ 9:30 - Public Sector Net Borrowing (May). Is the government succeeding in their efforts to cut the UK's debt burden? Friday's headline release will shed some light on the matter.

Analysts expect the government to have growth debt by £13.900B in May.