UK: Weekly FX Market Update 11 August

GBP

• Last Thursday, the Bank of England increased its inflation forecast to 4% while narrowly voting to cut rates by 0.25% - a 'hawkish cut'.

• As a result, the Pound strengthened due to the bullish sentiment. Will this strength continue when UK employment data is released on Tuesday and GDP on Thursday?

EUR

• As German data disappointed, the Pound took advantage against the Euro.

• Will the Eurozone's economic sentiment on Tuesday and GDP on Thursday strengthen the Euro?

USD

• Tariffs are seemingly everywhere, with change appearing to be the only constant in the US.

• Will Tuesday’s inflation reading, and Friday’s retail sales show the effects of the tariffs and lead to a weaker Dollar?

• What will Friday’s meeting between Trump and Putin produce?

Main events for this week:

Mon Aug 11

No Top Tier Data

Tue Aug 12

05:30 AUD RBA Interest Rate Decision

06:30 AUD RBA Press Conference

07:00 GBP Average Earnings/Unemployment Rate/Claimant Count Change

10:00 EUR ZEW Economic Sentiment

13:30 USD CPI

15:00 USD FOMC Barkin Speaks

Wed Aug 13

02:30 AUD Wage Price Index

18:00 USD FOMC Goolsbee Speaks

Thu Aug 14

02:30 AUD Employment Data

07:00 GBP GDP/Goods Trade Balance/Industrial Production/Manufacturing Production

10;00 EUR Flash GDP

13:30 USD Producer price Index

19:00 USD FOMC Barkin Speaks

Fri Aug 15

All Day Trump & Putin meet

13:30 USD Retail Sales

14:15 USD Industrial production/Capacity Utilization Rate

15:00 USD Prelim UoM Consumer Sentiment

15:00 USD Prelim UoM Inflation Expectations