The GBP markets have opened relatively unchanged since Friday’s closed. At the time of writing, GBP is trading at 1.3845 against USD and 1.1670 against EUR.
Looking into the week ahead, a relatively busy calendar for economic data releases will keep the markets well fed and open the gate for potential volatility.
Tuesday will see the Reserve Bank of Australia set their interest rates once again with market expectation to remain unchanged at 0.1%. At 9am Eurozone GDP figures will be released with an expected year on year growth of 13.6%. Anything wildly outside of the consensus may result in some movement across EUR pairings.
On Wednesday, The Bank of Canada will also release their interest rate decision expecting to keep things unchanged at 0.25%. In the afternoon, United States Federal Reserve chairman Williams will give a speech in tandem with the release of the Fed’s “Beige Book”, a report given by the 12 district banks with general commentary on the economic health in their respective districts. Any positive sentiment given in this report has historically proved bullish for USD.
Ending the week, Chinese CPI data will be released on Thursday giving a base-line reading on the country’s inflation level, with modest 1% growth expected. Finally, the European Central Bank will release their interest rate decision on Thursday morning alongside their Monetary Policy Decision Statement. In this report the Central Bank will give commentary on their monetary policy decision, with the goal of meeting its inflationary target. The document carries huge importance for the EUR, as any tweaks to the wording can move the common currency either up (hawkish statement) or down (dovish statement).
Have a good day.
James Camp, Senior Relationship Manager.
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