Sterling selling resumes and (data dependent) it could be about to get worse this week..
| GBP
| The Pound is in the red again today as investors, traders, economists and pretty much everyone loses confidence in both the chancellors plan and how well the UK could perform in 2025.
In case you have been living under a rock for the past week, how the UK is choosing to manage its debt is under intense scrutiny, which has prompted a fairly large currency sell-off.
Labour's long anticipated budget has proven to be near fatal to the economy (flat-lined), it has seen inflation and unemployment rise, both business and investor confidence has plummeted and the £ is the worst performing currency of the G7 so far this year (by some distance).
Economically, the Pound faces a tough week ahead with big data releases. Every bit of data has the chance of punishing GBP further, whilst seeing it improve only marginally if things go better than expected. A risk week therefore is being called for Sterling sellers.
EUR The Euro faces the same week ahead as the previous two in 2025 so far. More losses versus the USD and more gains against GBP..
It's not about the EU/Euro-Zone/€ on financial markets at this moment, but their time will come soon no doubt (inflation is expected to be a non-event this week). The things going on in both the US & UK are too prominent for now, so the 'sitting duck' role will be played.
USD The Dollar is broadly very strong just now and is completely dominating the majors. A clear 3% and over 4% gain versus the Euro & Pound respectively in just the last month alone is considerable.
But more is still expected to come both near & long term, even though the routs have been swift and deep already. Key economic data is being released this week by the US, so there could be some respite for both the € & £, but I won't be betting on it.
Please check out the main events of the week below..
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Expected mid-market ranges for January 13th 2025 | | |
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Upcoming Data | Monday 13th January 2025 | 19:00 US - Fed budget balance
| Tuesday 14th January 2025 | 13:30 US - PPI & core PPI
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Wednesday 15th January 2025 | 07:00 UK - Core inflation & inflation rate 07:45 EU - French inflation 08:00 EU - Spanish inflation 10:00 EU - Euro-Zone industrial production 13:30 US - Core inflation & inflation rate
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| Thursday 16th January 2025 | 07:00 UK - GDP, industrial/manufacturing production & trade balance 07:00 EU - German inflation rate 09:00 EU - Italian inflation rate 10:00 EU - Italian & Euro-Zone trade balance 12:30 EU - ECB monetary policy meeting 13:30 US - Initial/continuing jobless claims & retail sales 15:00 US - Business inventories 21:30 US - Fed's balance sheet |
| Friday 17th January 2025 | 07:00 UK - Retail sales 10:00 EU - Euro-Zone core inflation & inflation rate 13:30 US - Building permits & housing starts 14:15 US - Manufacturing & industrial production
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