UK: Weekly FX Market Update 21 August
GBP
Holiday markets are here, however, sterling has remained resilient.
UK Average Earnings hit 8.2% and Core CPI stays steady at 6.9%.
Bloomberg analysts now expect UK rates to hit 6% - could this create new highs for the pound?
UK Flash Manufacturing and Services PMI on Wednesday could provide direction this week.
EUR
As GBPUSD grinds higher, EURUSD diverges lower.
Previously hawkish ECB member Kazak turned dovish on Euro interest rates.
Eurozone Industrial production jumped higher by 1% last month but couldn’t help the euro gain against the pound and dollar
Can the euro overcome market worries about eurozone energy supply costs and sticky inflation?
Last month Flash Manufacturing and Services PMI started the EURUSD decline. Will they stay negative on Wednesday?
USD
The US economy is performing well and interest rates are expected to stay elevated into 2024.
FOMC Meeting Minutes continued to note that inflation risks ‘could require further tightening’ - will this strengthen the dollar going forward?
What message will the Federal Reserve give us at the Jackson Hole Symposium this week?
Main events for this week:
Mon Aug 21
No Top Tier Data
Tue Aug 22
All Day BRICS Summit
15:00 USD Existing Home Sales
19:30 USD FOMC Goolsbee and Bowman Speak
Wed Aug 23
All Day BRICS Summit
09:00 EUR Flash Manufacturing and Services PMI
09:30 GBP Flash Manufacturing and Services PMI
14:45 USD Flash Manufacturing and Services PMI
15:00 USD New Home Sales
Thu Aug 24
All Day BRICS Summit
All Day US Federal Reserve Jackson Hole Symposium
13:30 USD Unemployment Claims
Fri Aug 25
All Day US Federal Reserve Jackson Hole Symposium
07:00 EUR German Final GDP
09:00 EUR German IFO Business Climate
15:00 USD Revised UoM Consumer Sentiment