UK: Weekly FX Market Update 1 December
GBP
The Chancellor delivered her budget, keeping to her fiscal rules, but growth initiatives were sorely lacking.
The gilts market remained calm and sterling squeezed slowly higher.
However, with growth forecasts downgraded and the Bank of England possibly set to cut rates in December, what is there to stop sterling slipping lower again?
EUR
Ukraine/Russia peace talks possibly supported EURUSD strength last week.
Or was it increased expectations for a December 10th rate cut that pushed it higher?
Eurozone CPI data due to be released on Tuesday and revised GDP data on Friday may give some direction this week.
USD
The USD is weakening on the chances of a possible Dec 10th interest rate cut from the Fed.
White House adviser Hassett has been floated as the next Fed Chair, without causing market mayhem.
The Federal Reserve’s favoured inflation gauge, Personal Consumption Expenditure, is released on Friday, which could encourage dollar volatility.
Main events for this week:
Mon Dec 1
00:00 JPY BoJ Ueda Speaks
15:00 USD ISM Manufacturing PMI
15:30 GBP MPC Dhingra Speaks
Tues Dec 2
01:00 USD Fed Chair Powell Speaks
10:00 EUR CPI Flash Estimate
15:00 USD FOMC Bowman Speaks
Wed Dec 3
08:30 EUR ECB president Lagarde Speaks
13:15 USD ADP Non-Farm Employment Change
14:15 USD Capacity Utilization/Industrial Production
15:00 USD ISM Services PMI
17:00 GBP MPC Mann Speaks
Thu Dec 4
12:30 USD Challenger Job Cuts
12:45 GBP MPC Mann Speaks
13:30 USD Unemployment Claims
17:00 USD FOMC Bowman Speaks
Fri Dec 5
10:00 EUR Revised GDP
13:30 CAD Employment Report
15:00 USD Core PCE Price Index
15:00 USD Prelim UoM Consumer Sentiment/Inflation Expectations
About the author
