020 7898 0500Sterling has started the week well in early trading today, strengthening marginally against the euro and US dollar. However it is still slightly weaker than the start of last week against both.
It’s a busy week for data on this side of the Channel, but while the big events here will include high level data on unemployment, inflation, retail sales, PMI and consumer confidence, it could be the European Central Bank’s interest rate decision on Thursday that has most influence on the GBP to EUR exchange rate.
In politics, by Wednesday we will know which two candidates are going through to the Conservative Party members to vote on as Prime Minister. At the moment it looks to be Rishi Sunak and one other, but the markets will be very interested in who wins that contest. Sunak has this weekend announced that he would deregulate the City in the search for post-Brexit opportunities.
A heatwave is set to strike the UK today and tomorrow, potentially reaching the highest temperatures ever recorded in central England.
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GBP: Pound hits the new week in upbeat mode
Sterling has started the day in an upbeat fashion, possibly the result of Rishi Sunak’s lead in the Tory leadership contest, or possibly a hangover from the better than expected GDP result last week.
This week is awash with high level data, including unemployment tomorrow and inflation on Wednesday.
The Conservative leadership contest comes to ahead on Wednesday afternoon at the latest, with the future economic leadership of the country for the next two weeks at stake, so you can expect market movement around this time.
GBP/USD past year
EUR: Euro’s mixed results in lead up to ECB decision
It’s been a mixed week for the single currency, losing ground to the pound, NOK, Canadian and US dollar while losing to the Swedish krone and others.
The big event of the week is undoubtedly the European Central Bank’s interest rate decision on Thursday, and that will come in the wake of the inflation data on Tuesday.
USD: Quiet week for data as USD growth tails off
The dollar’s recent strengthening was pared a little back last week, slipping most noticeably against SEK and the Australian dollar, and by around 0.5% against the euro.
Against the pound it has remained relatively stable while losing a little ground this morning.
On the data horizon this week is housing starts tomorrow, which rather stalled last month in the face of inflation and higher mortgage rates, and existing home sales on Wednesday. Overall, however, it’s a fairly quiet week for data.
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 3918 7255 to get started.
