UK: Weekly FX Market Update 7 April

GBP

• With the Iran war continuing, the UK is one of the countries most exposed to higher energy prices, resulting in Sterling weakness.

• With PMI services due for release on Tuesday, investors will be looking for a glimmer of hope that the UK economy isn't grinding to a halt.

• The US CPI, released on Friday, could be directional for GBPUSD.

EUR

• Macron says the Straits of Hormuz can only be opened in concertation with Iran.

• ECB officials say that an April rate hike is possible if the Iran war were to push inflation too far above target.

• Meanwhile, ECB’s Panetta says damage caused by the Iran war will continue to have a negative impact on the global economy even if hostilities end soon.

USD

• The latest Trump deadline for an Iranian agreement is Tuesday at 8pm EST.

• Last Friday’s jobs report showed 178k new jobs added to the US economy in March, though February’s decline of 92k was negatively revised to -133k.

• This week, investors will inspect the FOMC meeting minutes on Wednesday, the PCE on Thursday, and the CPI on Friday.

Mon Apr 6

09:30 GBP Final Services PMI

15:00 USD ISM Services PMI

Tue Apr 7

13:30 USD Durable Goods Orders

Wed Apr 8

19:00 USD FOMC Meeting Minutes

Thu Apr 9

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

Fri Apr 10

13:30 CAD Employment Data

13:30 USD CPI

15:00 USD Prelim UoM Consumer Sentiment/Inflation Expectations