No news could be good news

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


02.00     CNY        Retail Sales


01.30     AUD       RBA Meeting Minutes

06.00     GBP       Unemployment Data

12.30     CAD       Inflation Data


02.00     NZD       Interest rate decision and statement

06.00     GBP       Inflation Data

09.00     EUR        GDP figures

12.00     USD        FOMC Minutes


01.30     AUD       Unemployment data

12.30     USD       Jobless claims


06.00     GBP        Retail Sales

12.30     CAD       Retail Sales