UK: Weekly FX Market Update 12 August

GBP

• Sterling has been consistently under pressure after the Bank of England rate cut on August 1st.

• There is a host of UK economic data for release this week, including Average Earnings, CPI, GDP and Retail Sales .

• Will these data releases show a growing UK economy or one about to slow down again?

EUR

• The greatest show on earth closes in Paris. Will attention now remain on France but pass to the political arena?

• Core Eurozone CPI is stuck. It has been between 2.7% and 3.3% for the last six months. Can the ECB afford to cut rates in September in the face of sticky inflation?

• Eurozone GDP is released on Wednesday, however, could this be overshadowed by US CPI later that day?

USD

• After last weeks mini meltdown, has the market recovered its composure?

• US CPI is released on Wednesday. Will it stay steady at 3%, as expected, and confound those investors asking for US rates to be cut by 0.5% in September?

• Retail sales are released on Thursday and Inflation expectations on Friday.

Main events for this week:

Mon Aug 12

No Top Tier Data

Tue Aug 13

02:30 AUD Wage Price Index

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

10:00 EUR ZEW Economic Sentiment

13:30 USD PPI

Wed Aug 14

03:00 NZD RBNZ Int Rate Decision

07:00 GBP CPI

10:00 EUR Flash Employment Change/Flash GDP/Industrial Production

13:30 USD CPI

Thu Aug 15

02:30 AUD Employment Data

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

13:30 USD Retail Sales/Unemployment Claims

14:15 USD Industrial Production

Fri AUG 16

00:30 AUD RBA Gov Bullock Speaks

07:00 GBP Retail Sales

15:00 USD Prelim UoM Consumer Sentiment/Inflation Expectations