Central banks take centre stage

By Matthew Boyle

Today’s European Central Bank lending report and Thursday’s Bank of England rate decision are the ones to watch this week.

Either could cause a break out of the tight range we have seen GBP/EUR has traded in recently. The ECB bank lending survey is an assessment by the governing council of monetary and economic developments on which it bases its monetary policy decisions. With central bank policy being the main driver of exchange rates for many months now this is a key release as it will give insight into the stance the ECB will adopt as like the BoE they continue to battle rising levels of inflation. On Thursday we then see the BoE step up for their turn with the interest rate decision and following monetary policy statement. Should they adopt a more Hawkish stance we might see the Pound breakout upwards from the recent range but otherwise expect rates to stay within roughly a cent of current levels.

Speak to your currency consultant today if you would like to explore ways in which we can help remove the risk of increased cost should the rate move the wrong way. Data out this week which could move rates is listed below.

Monday

09.00     EUR        German GDP

Tuesday

09.00     EUR       ECB Bank Lending Survey

09.30     GBP       Mortgage Approvals

10.00     EUR       GDP

Wednesday

10.00     EUR       Index of consumer prices

13.15     USD       ADP Employment change

15.00     USD       ISM Manufacturing data

19.00     USD       Interest rate Decision, Monetary policy statement ,FOMC Press Conference

Thursday

12.00     GBP       Bank of England Minutes and Monetary Policy

13.15     EUR       Monetary Policy Statement

13.45     EUR       ECB Press conference

Friday

13.30     USD       Non-Farm Payrolls

15.00     USD       ISM Services PMI