All ResourcesBlogMarket AnalysisCase StudiesWhitepapersPodcastsWebcastsNewsroom
Advanced filters
Topic:
Job Role:
Industry:
Content Type:
Topic:
Job Role:
Industry:
Content Type:

UK: Weekly FX Market Update 5 June

CalendarJune 5, 2023
EmailTwitterLinkedin
GBP

  • With the spotlight elsewhere, the pound had a good week against the US Dollar and Euro. Gaining 1% against both the US dollar and euro.

  • GBPEUR hit a 6 month high.

  • Some analysts attributed this strength to divergence between the Bank of England and its interest rate path when compared to the US Federal Reserve and European Central Bank .

  • UK Services PMI is the only top tier economic release for the pound this week.

EUR

  • The euro managed a bounce higher against the US dollar last week, providing the biggest one-day advance in nearly a month.

  • However, Eurozone inflation coming in weaker than expected last week.

  • The market will keenly watch Eurozone data releases of Sentix investor confidence, retail sales and revised GDP for direction.

  • German data due for release includes factory orders and industrial production. Can the data give hope that Germany’s economy can pull itself out of recession?

USD

  • Possible catastrophe was averted as the budget ceiling agreement was passed into law by President Biden over the weekend.

  • The US dollar has been soft since the agreement was passed by the House of Representatives.

  • Non-Farm Payrolls data last Friday showed a strong jobs market once again. Will the Fed hawks win the day and hike rates on June 14th encouraging a stronger US dollar?

  • Market expectations for a June hike or pause have been swinging wildly the over the past two weeks. Fed’s Harker is the latest member to suggest a pause is possible on June 14th.

Events for the week ahead:

Mon Jun 5

09:00 EUR Final Services PMI

09:30 EUR Sentix Investor Confidence

09:30 GBP Final Services PMI

15:00 USD ISM Services PMI

Tue Jun 6

05:30 AUD RBC Int Rate Decision

07:00 EUR German Factory Orders

10:00 EUR Retail Sales

Wed Jun 7

00:20 AUD RBA Gov Lowe Speaks

02:30 AUD GDP QoQ

02:30 CNY Trade Balance

07:00 EUR German Industrial Production

13:30 USD Trade Balance

15:00 CAD Bank of Canada Interest Rate Decision

Thu Jun 8

00:50 JPY Final GDP

10:00 EUR Revised GDP

Fri Jun 9

00:50 CNY CPI

13:30 CAD Employment Data

Author

Trevor Charsley

Trevor Charsley

Senior Market Strategist

Trevor has over 25 years' trading and sales experience. He produces regular market and technical analysis as well as help with the structure and management of FX hedging policies. Trevor is often listed among the top "currency forecaster on Bloomberg".

EmailTwitterLinkedin