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The pound starts this week 1.22% higher against the US dollar
The pound extended its losses against the US dollar last week as UK retail sales and consumer confidence dropped.
However, the US dollar failed to regain strength as major stocks fell amid concerns about an escalation in the Israel and Gaza conflict.
Producer prices in Germany dropped at a record pace of 14.7% in September, compared with estimates of a 14.2% fall following a 12.6% decline in August.
UK retail sales declined 0.9% in September, reversing from August’s 0.4% growth and worse than market forecasts of a 0.2% fall. Sales at non-food stores fell by close to 2%.
The Malaysian ringgit weakened to a 25-year low on Friday, falling past $4.75 in October, the lowest since the 1998 financial crisis amid declining foreign demand.
US natural gas futures fell more than 8% last week, the lowest in over two weeks and likely pressured by record output, mild weather and larger-than-expected storage.
Today is relatively quiet on the data front, with the monthly report from Germany’s Bundesbank and the European Commission releasing preliminary consumer confidence data for October.
Tomorrow UK unemployment figures for August are due, more on that below, as is German consumer confidence and manufacturing PMIs.
On Wednesday, German business climate figures will be released and Federal Reserve chair, Powell will speak ahead of the Bank’s interest rate decision next week.
The spotlight this week will be on the European Central Bank which is due to announce its latest interest rate decision on Thursday afternoon. Markets forecast the rate to remain unchanged at 4.5%.
Later in the week, US economists will be listening out for the latest US durable goods orders, US GDP, US personal spending and core inflation figures.
Make sure any upcoming transactions are protected against the risks of sudden market movements. Secure a fixed exchange rate now with a forward contract; call your Business Trader on 020 7898 0500 to get started.
GBP: UK unemployment expected to remain unchanged
Tomorrow morning the UK unemployment rate is expected to remain unchanged at 4.3%.
GBP/USD: the past year
EUR: Economists lock in steady Bank Rate
On Thursday, the European Central Bank will meet to decide whether to raise interest rates from 4.5%. Economists have priced in a pause in rate hikes as Lagarde hinted last week.
USD: Powell says inflation remains “too high”
On Thursday last week, Fed chairman Jerome Powell suggested the central bank had no immediate plans to raise rates but commented that inflation remains “too high.”
