By Matthew Boyle
The Pound remains under pressure as GDP figures this morning showed slower growth than expected. Despite GDP rising 0.2% this was less than the expected 0.3% and as a result, sterling remained on the back foot.
This week, market focus will be on inflation data which is directly linked to interest rate decisions. Whilst UK inflation has continued to rise, and with it rumours of further interest rate hikes, last week’s energy bill introduced by new UK Prime minister Liz Truss is expected to dramatically cut inflation – something which might improve the outlook for the Pound.
To add pressure to falling GBP rates, the EUR has gained strength as news emerged that Ukraine have taken a significant military advantage over Russia in a conflict that has had a significant impact on the strength of the single currency. Any sign that Russia and its grip over gas prices may be failing of course only helps the Euro gain.
Whilst this battle continues, Tuesday will be critical as US inflation data is released. Will the Fed’s hikes have slowed inflation enough to be reflected in their aggressive programme of interest rate hikes?
With the Greenback leading the market and inflation the key issue no doubt this is the one to watch this week.
Speak to your Currency Consultant if you have any upcoming transfers to make.
Data This Week
06.00 GBP GDP & Manufacturing and Industrial Production
12.00 EUR ECB Data
06.00 GBP Unemployment Data
09.00 EUR German Inflation Data
12.30 USD US inflation Data
06.00 GBP Inflation Data
22.45 NZD GDP
01.30 AUD Employment Data
12.30 USD Retail Sales
02.00 CNY Retail Sales
06.00 GBP Retail Sales
14.00 USD Consumer Sentiment