A lighter day on the data calendar greets the European market to kick start the week. Another quiet Monday in succession sees little on the horizon to see any data driven movements within the foreign exchange markets. Sterling has opened the new week slightly lower against most of the major currencies, after having a fairly positive run during the last week.
Despite this week starting light for data releases, it will be a big week with both the Fed and Bank of England releasing their interest rate decisions on Wednesday and Thursday respectively. There will be a lot of focus on the press conference following the BOE decision Thursday lunchtime. There are rumours circulating that the UK will be one of the first major economies to raise interest rates. Following the drastic measures taken in early 2020 as the Covid pandemic started to rip through Europe and America, interest rates have yet to recover. Despite there being no real chance of an interest rate raise this time around, markets are anticipating an exchange rate rise in early 2022. With the following press conference on Thursday being a good marker to learn more on the central bank’s view heading into the final quarter of the year.
Boris Johnson has been talking to reporters on a flight over to the US, in regards to the current supply chain issues currently being seen. The PM was quoted as saying “the global economy is coming back to life” and “it’s going to take a while, as it were, for the circulation to adjust.” Also the PM mentioned that issues to supply chains were not just within the UK.
Have a great day.
Jack Nicholls, Senior Relationship Manager.
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