After another roller coaster week in the UK with the Pound moving on Brexit news, economical data and central bank moves we look at what else may affect your currency purchase in the coming days.
The beginning of the week looks like it may be relatively quiet, there are no data points of note due to be published on Monday and, with Parliament prorogued, I wouldn’t think there would be much movement on Sterling crosses.
We start Tuesday with German ZEW figures being released, if they vary from the expected we could witness some EUR moves. The main cause of currency fluctuations today will come from any news on the Supreme court’s ruling on Boris Johnson’s proroguing of parliament. After Scottish Judges ruled his order to suspend parliament was unlawful it has been taken to the Supreme court to decide the next course of action, we can expect some fireworks either way!
Wednesday finally brings about the first meaningful UK data of the week with Inflation figures released at 9:30, these are expected to drop by 0.3% to 1.8%. Any deviation will cause Sterling to fluctuate accordingly. There will also be USD movement overnight, the FOMC will be discussing their next interest rate move at 7:00pm. Investors are anticipating at least a 0.25% basis point cut. Coupled with a press release from Jerome Powell, who will touch on future moves, you can guarantee some USD volatility into Thursday’s trading day.
More Central bank data today, the Bank of England are due to release their official votes on the UK’s interest rate. The decision is expected to come in at 9-0 again in favour of holding the base rate at 0.75%, if Mark Carney or any of the other members change their vote you would expect the Pound to move on this. I don’t expect anyone to change their vote with Brexit and economic instability so this may be a bit of a non-event. Some minor US data will be released in the afternoon and UK retail sales first thing in the morning may cause some affect on their respective currencies.
It’s a quieter end to the trading week with only minor data points published today from the EU, UK and Canada.