As always on a Monday we look at what may move the markets and affect how much you pay for your currency. Last week saw a 4-cent swing in GBP/EUR in what proved another volatile time for the Pound, you can expect more fireworks this week with influential data points and key Brexit talks planned.
A lack of data today but we do see Parliament reconvene and the Queens speech set out the UK governments future plans.
Today we have the UK’s job data released at 9:30am in the form of Average Earnings, Claimant count and the unemployment rate. There is also a speech from Bank of England governor Mark Carney so we could see GBP movement first thing.
We also have a host of Federal Open Market Committee (FOMC) speaking throughout the afternoon.
UK CPI data is published today and can have an affect on the exchange rates. A higher than anticipated reading can lead to calls for an interest rate hike which strengthens a currency. This is due to rise to 1.8%, still below the Bank of England’s target of 2% so I wouldn’t expect a rate rise anytime soon but worth keeping an eye on.
In the afternoon we have Canadian CPI, US retail sales and more speeches from several central bank members.
Today is the start of the important 2-day summit in Belgium of all the EU leaders. They will begin debating PM Johnson’s new deal proposal. This is the last such meeting planned for the EU so it will prove crucial in getting a deal secured.
We also see UK retail sales and various pieces of US data. I would expect any leaks from the EU summit to dominate today.
A much quieter day today with no releases of relevant data. Any Brexit news will continue to influence the exchange rates.
There is a special Parliament sitting scheduled for today. This is the final day that the Prime Minister can ask for a delay to Brexit under the Benn Act. He has stated many times that he won’t be asking for this to happen so he is hoping that his deal will get passed through parliament.