UK: Weekly FX Market Update 19 January

GBP

• Last week’s better than expected UK GDP failed to give the pound a lift.

• This week employment data on Tuesday and CPI on Wednesday could be directional.

• Possible trade aggression from the US may also weigh on the pound.

EUR

• EURUSD eased lower on Greenland fears before the weekend.

• The possible elimination of dovish candidate Hassett from the Fed Chair race helped the USD as well.

• US tariffs on eight European nations are being threatened by February 1^st . The European Union is considering whether to counter with €93 billion tariffs by Feb 6^th as a response.

USD

• For the third weekend in a row, the president steals the narrative. This time with tariff threats on former allies unless he can ‘buy’ Greenland.

• The Supreme court could rule on the legality of the presidents IEEPA tariffs on Tuesday & Fed Governor Cook on Wednesday.

• US PMI readings on Friday finish the week. Will they show a diminishing gap in expected performance between the US and other G7 members?

Mon Jan 19

US All Day Holiday

Davos World Economic Forum Mon-Thu

10:00 EUR Final CPI

13:30 CAD CPI

Tue Jan 20

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

10:00 EUR ZEW Economic Sentiment

Wed Jan 21

07:00 GBP CPI

15:00 USD Pending Home Sales

17:00 USD President Trump Speaks

Thu Jan 22

00:30 AUD Employment Data

13:30 USD Final GDP QoQ/Core PCE Price Index/Unemployment Claims

Fri Jan 23

05:00 JPY Bank of Japan (BoJ) Interest Rate Decision

06:00 JPY BoJ Press Conference

07:00 GBP Retail Sales

09:00 EUR Flash Manufacturing & Services PMI

09:30 GBP Flash Manufacturing & Services PMI

13:30 CAD Retail Sales

14:45 USD Flash Manufacturing & Services PMI

15:00 USD Revised UoM Consumer Sentiment/Inflation Sentiment