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.
09.00 EUR German GDP
09.00 EUR ECB Bank Lending Survey
09.30 GBP Mortgage Approvals
10.00 EUR GDP
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
12.00 GBP Bank of England Minutes and Monetary Policy
13.15 EUR Monetary Policy Statement
13.45 EUR ECB Press conference
13.30 USD Non-Farm Payrolls
15.00 USD ISM Services PMI