By Matthew Boyle
This week is particularly quiet in the way of data, particularly from the UK. As such we can expect sentiment to continue to drive market rates as it has done for some time now.
GBP rates have been slowly dwindling over the last couple of weeks with little positive economic data to allow it to push off.
Worryingly it also seems that market sentiment is beginning to become far from positive for the Pound.
As the weather has started to change and cold begins to return to the UK it seems feelings towards GBP may be similar. The excitement over the effectiveness of the UK’s vaccination programme has declined massively as Europe’s numbers have caught up, together with UK cases on the rise again. Concerns of the incoming cold weather front combined with UK schools starting again and so many mixing have left many concerned that we may be seeing the start of a spike and subsequent decline in the UK’s fortunes.
RBC Capital Markets forecast we will see sizable declines before the end of the year and that these will stretch out into next year.
It is certainly concerning with restrictions eased, so many mixing now schools are back and as the cold weather sets-in – and this is being reflected in the markets. Whilst we don’t know what will happen in the coming months, we do know that currently rates are around a cent or so off the best they have been in 18 months.
So, if you are concerned and don’t want to take a risk, speak to your broker today for some guidance on how to remove the risk from your transfer.
0700 EUR Eurofin Meeting
23.01 GBP like for like Retail sales
04.30 AUD RBA interest rate Decision & Interest Rate Decision
09.00 EUR GDP & Employment Data
23.50 JPY GDP
14.00 CAD BoC Rate Statement & Interest Rate Decision
18.00 USD FED’s Beige Book
11.45 EUR ECB Interest Rate Decision & Monetary Policy Statement
12.30 EUR ECB Press Conference
06.00 EUR German CPI data
12.30 CAD Unemployment Data