UK: Weekly FX Market Update 7 September

GBP

• While UK gilt yields jump higher Chancellor Healey promises to stick to the government’s fiscal rules.

• ‘Good vibes’ PM Burnham decides to put a cap on bus fares in January. Chancellor Healey warns of a tough budget in a ‘more dangerous world’.

• GBPUSD seems underwhelmed by it all & trades in recent ranges. GBPEUR slips lower on improving Eurozone economic performance.

EUR

• Eurozone leading indicators help the Euro stay supported. But the far-right AFD wins the regional Saxony-Anhalt election.

• With Ireland’s central bank Governor worrying about high inflation combining with improving economic performance. Is a cycle of rate hikes from the ECB coming soon?

• Will the ECB hike rates from 2.25% to 2.5% on Thursday as Bloomberg analysts suggest?

USD

• Fed Chair Warsh says he has ‘work to do’ on inflation. FOMC Waller says he sees signs of disinflation.

• The August Non-Farm Payrolls report shows a strong employment market.

• What will US CPI due for release on Friday show?

Mon Sep 7

All Day US holiday

09:30 EUR Sentix Investor Confidence

10:00 EUR Revised GDP

Tue Sep 8

12:50 JPY Final GDP

Wed Sep 9

13:15 USD ADP Weekly Employment Change

Thu Sep 10

13:15 EUR ECB Interest Rate Decision

13:30 USD Core Producer Price Index

13:45 EUR ECB Press Conference

Fri Sep 11

07:00 GBP GDP

13:30 USD CPI

15:00 USD prelim UoM Consumer Sentiment/Inflation Expectations