UK: Weekly FX Market Update 20 October

GBP

• Despite disappointing employment data, GBPUSD moved higher last week.

• Will Public sector borrowing on Tuesday upset the gilt market?

• With UK CPI released on Wednesday and Retail Sales on Friday, it could be a busy week for the Pound.

EUR

• The single currency recovered against the dollar last week.

• The French PM managed to defeat two votes of ‘no confidence’ in what could be a good news sign that France can agree a budget.

• Friday sees the release of the important looking Manufacturing and Services PMI.

USD

• The federal government is still in shutdown, this time with staff being sacked and Democrat programmes being permanently closed by the President.

• US China trade tensions moved another notch higher, with the US trying to isolate China amid their behaviour over rare earths distribution.

• Will US CPI, to be released on Friday, show benign inflation and allow the Fed to cut rates on October 29th?

Main events for this week:

Mon Oct 20

03:00 CNY GDP

09:00 EUR Current Account

Tues Oct 21

07:00 GBP PSNB

12:00 EUR ECB President Lagarde Speaks

Wed Oct 22

07:00 GBP CPI

13:25 EUR ECB President Lagarde Speaks

Thu Oct 23

15:00 EUR Consumer Confidence

Fri Oct 24

07:00 GBP Retail Sales

09:00 EUR Flash Manufacturing & Services PMI

09:30 GBP Flash Manufacturing & Services PMI

13:30 USD CPI

14:45 USD Flash Manufacturing & Services PMI