1 MIN READ
The Week Ahead
The Nationwide HPI due tomorrow is forecasted to slightly improve before the UK releases further PMI data. The PMI readings are expected to stabilise so the market will likely be expecting minimal movement. If all economic data comes out as expected, then market sentiment will continue to influence the Pound this week.
Global trade concerns, geopolitical tensions and COVID-19 is giving some support to safe-haven currencies and the riskier currencies such as the Australian dollar continues to take a backfoot. After a quiet period last week, Australia will have some economic indicators released this week. It starts with Building Permits on Wednesday, expected to fall to -10%. This is followed by Trade Balance on Thursday and ends with Retail Sales on Friday.
The US Dollar had a slight increase as markets begin to realise a slower than expected US recovery. The states of Texas and Florida reintroduced containment measures as they saw significant increases in infection rates and hospitalisations. Looking at the week ahead, today will be quiet on data. Fed Chairman Jerome Powell will address the Senate on the current economy tomorrow. On Wednesday, data for ADP Employment Change figures and Final PMI Manufacturing Figures for June will be released. The week closes with Non-Farm Payrolls for June on Thursday.
Europe will start the week today with the German Consumer Price Index, which is expected to tick up from -0.1% to 0.3%. On Tuesday, this will be followed by the Consumer Price Index from France and Europe which is forecast to remain stable. German retails sales & Manufacturing PMIs for France, Germany and Europe for June will be released on Wednesday and are forecasted to remain stable. The week will then close with the Europe wide unemployment rate and services PMIs for France, Germany and the EU.
Disclaimer: The above comments are only our views and should not be construed as advice. You should act using your own information and judgement. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute the author’s own judgement as of the date of the briefing and are subject to change without notice. Error & omission excepted.