UK: Weekly FX Market Update 18 November 2024

GBP

• The Trump trade was alive and kicking last week, with USD strength pushing GBPUSD lower.

• GBPUSD dropped by around 2%, not helped by a disappointing UK GDP number.

• UK CPI is released on Wednesday. Could higher inflation strengthen the Pound, or will we see further weakness as the market worries about a spell of weaker growth?

EUR

• The Eurozone economy faces many hurdles, just as the market starts to price in a possible US economic boom.

• Important-looking Purchasing Managers Index Data is due to be released on Friday. Will it forecast more economic weakness?

• Can ECB president Lagarde steady the ship on Friday morning?

USD

• President-Elect Trump is forming an Administration of loyalists.

• Does that mean we can expect tariffs and tax cuts starting from Jan 21^st 2025?

• If so, will Trump’s policies produce inflation? And how will the Federal Reserve react?

Main events for this week:

Mon Nov 18

All Day G20 meetings

15:00 USD FOMC Goolsbee Speaks

Tue Nov 19

All Day G20 meetings

10:00 EUR Final CPI

13:30 CAD CPI

Wed Nov 20

07:00 GBP CPI

16:00 GBP MPC Ramsden Speaks

Thu Nov 21

08:00 AUD Reserve Bank Australia Governor Bullock Speaks

13:30 USD Unemployment Claims

14:00 GBP MPC Mann Speaks

17:25 USD FOMC Goolsbee Speaks

Fri Nov 22

07:00 GBP Retail Sales

08:30 EUR ECB President Lagarde Speaks

09:00 EUR Flash Manufacturing & Services PMI

09:30 GBP Flash Manufacturing & Services PMI

14:45 USD Flash Manufacturing & Services PMI