By Matthew Boyle
Last week was a relatively flat one for GBP rates. Surprisingly, UK second quarter GDP dropped less than expected but the Pound remained trading range bound, particularly against the Euro.
Whilst this week is relatively quiet in terms of market data releases, we do have two key releases – unemployment tomorrow and inflation data on Wednesday.
Tuesdays release feeds into the Bank of England interest rate policy with wage growth and jobs market key factors. However, it is Wednesday’s inflation figure that will be more closely watched in relation to the BoEs ongoing monetary policies. After we saw the BoE make the largest hike in 27 years seeing rates raised by 50bp this result may give clues for what to expect next.
With central bank policy largely the main driver of rates a shock result here could well see GBP break its recent range-bound trading.
Stay in contact with your Currency Consultant to avoid being caught out by potentially costly market movements.
Data out this week
Monday
02.00 CNY Retail Sales
Tuesday
01.30 AUD RBA Meeting Minutes
06.00 GBP Unemployment Data
12.30 CAD Inflation Data
Wednesday
02.00 NZD Interest rate decision and statement
06.00 GBP Inflation Data
09.00 EUR GDP figures
12.00 USD FOMC Minutes
Thursday
01.30 AUD Unemployment data
12.30 USD Jobless claims
Friday
06.00 GBP Retail Sales
12.30 CAD Retail Sales