UK: Weekly FX Market Update 2 March

GBP

• The Green Party wins the Gorton & Denton by-election, adding to the pressure on PM Starmer and the pound.

• The US and Israel launch pre-emptive strikes against Iran, a by-product being the strength of the US dollar.

• Will these twin forces push GBPUSD towards the psychologically important level of 1.3000?

EUR

• The Euro also weakens following the US and Israel attack on Iran.

• Eurozone CPI and GDP may give direction to the Euro as well this week.

• Will EURGBP also see directional movement?

USD

• Last week’s Producer Price Index data showed higher than expected price pressure.

• Investors' focus switches to the attacks on Iran, which have pushed up oil prices quickly.

• By engaging in a war overseas, has the president taken his eye off the US electorates cost of living crisis?

Mon Mar 2

14:00 EUR ECB President Lagarde Speaks

15:00 USD ISM Manufacturing PMI

Tue Mar 3

10:00 EUR CPI Flash Estimate

Wed Mar 4

13:15 USD ADP Non-Farm Employment Change

15:00 USD ISM Services PMI

15:30 CAD Bank of Canada Gov Macklem Speaks

Thu Mar 5

13:30 USD Unemployment Claims

Fri Mar 6

10:00 EUR Revised GDP

13:30 USD Retail Sales/Non-Farm Payrolls/Average Hourly Earnings/Unemployment Rate