A busy week is ahead for the pound as Economic Data is expected to be released from Tuesday to Friday. The markets will be focussing on four main indicators: retail sales, GDP, inflation, and unemployment. Even while the value of sterling relative to the euro steadied, it underperformed several of its G10 peers throughout the recovery from the early-August losses.
The Euro is likely to have a sluggish week as there isn’t much data to spur any movement. On Wednesday, investors will be watching the EU GDP, which might cause more volatility. Investors will be watching the UK GDP growth forecast, which would be positive for the pound and depressing for the euro.
Due to the release of important data on Wednesday, including retail sales and inflation, the US market may experience volatility towards the end of the week. The market’s perception of interest rate reduction of up to 100 basis points will solidify if inflation appears to be improving.
Feel free to reach out to us for guidance and expert advice tailored to your specific needs.