UK: Weekly FX Market Update 13 July

GBP

• As GBPUSD slowly climbs are investors giving Sterling a cautious vote of confidence?

• GBPEUR continues to climb with Eurozone growth lagging UK growth.

• UK GDP is released on Thursday; can this outperformance continue with a new Prime Minister about to take the helm?

EUR

• ECB meeting minutes showed staff projections for inflation remaining above 2% even after nearly three additional rate hikes.

• The Governing Council recognised that the euro-area economy is slowing.

• Despite this weakness in the economy, EURUSD squeezed higher last week. Can this continue?

USD

• The US & Iran recommenced kinetic action last week. Trump called it a ‘flare up’.

• Some investors are wondering why the Fed isn’t hiking rates with inflation at 4.2%.

• Fed Chair Warsh testifies to Congress on Tuesday, just after US CPI has been released. Which way will CPI jump?

Mon Jul 13

05:30 USD FOMC Waller Speaks

19:00 GBP MPC Pill Speaks

Tue Jul 14

00:01 GBP BRC Retail Sales Monitor

13:15 ADP Weekly Employment Change

13:30 USD CPI

15:00 USD Fed Chair Warsh Testifies

21:00 GBP BoE Gov Bailey Speaks

Wed Jul 15

13:30 USD PPI

13:45 USD FOMC Williams Speaks

14:45 CAD Bank of Canada (BoC) Interest Rate Decision

15:00 USD Fed Chair Warsh Speaks

15:30 CAD BoC Press Conference

Thu Jul 16

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

10:00 EUR Trade Balance

13:30 USD Retail Sales/Unemployment Claims

Fri Jul 17

09:00 EUR Current Account

10:00 EUR Final CPI

14:15 USD Industrial Production

15:00 USD Preliminary Uni of Michigan Consumer Sentiment/Inflation Expectations