Another 'stick or twist' moment for anyone with exchanges in the pipeline..
| GBP
| Last week, the Pound was under some pressure and fell for 5-consecutive days after the latest round of global stocks being sold. Although, the sell-off was only minimal and Sterling fell on average just 0.3% across the board.
This week presents some huge data releases and economists are split in the outcomes for all. The UK offers crucial wage numbers tomorrow that may create market volatility if pressures remain too sticky or fall faster than expected.
On Wednesday, it's another close call with the UK's GDP release. 0.2% growth is expected, up from 0% last time out. But again, anything more or less than that could cause market movements. Other than that, Sterling will be moved by events elsewhere.
An important note - Historically, September is a month which generally sees global equities fall. As GBP is not a safe-haven currency and investor sentiment is risk off, this can mean a devaluation in the Pound..
EUR The headline event this week comes from the Euro-Zone in the form of the ECB's interest rate decision. Interest rates remain the market driver and so anything out of the central banks still needs to be watched closely.
A 25bp rate cut is priced in and the forward guidance is anticipated to say along the lines of the bank will be data-driven and non-committal. Any deviation from what is expected and we will see volatility.
USD It's obvious that the US economy is slowing, but it looks apparent that it's not slowing fast enough to warrant the Fed aggressively cutting interest rates. We will find out soon if the Fed does cut this month and by how much (potentially big global ramifications if it does) and the final test will come from the US inflation data this Wednesday..
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