UK: Weekly FX Market Update 8 June

GBP

• GBPUSD takes a tumble after strong US employment data.

• Could US CPI on Wednesday and UK GDP on Friday continue to see GBPUSD slide?

• Or is the market waiting for the Bank of England on June 18th, and the Makerfield by-election results on June 19th, before deciding its direction?

EUR

• Bloomberg analysts give the ECB a 96% chance of hiking rates from 2% to 2.25% on Thursday.

• If the rate hike is already fully ‘priced in’, the press conference, rather than the decision, may be of bigger interest.

• Could peace in either the Iran or Ukraine conflicts produce risk on sentiment and help the Euro?

USD

• May Non-Farm Payrolls showed the US labour market powering ahead.

• Will US CPI stay strong and support the US Dollar as well?

• Back-door peace negotiations have ceased between Iran and the US. If the US wants to open the Straits of Hormuz, it may have to use force.

• Could Trump decide to put ‘boots on the ground’ and encourage more US Dollar strength?

Mon Jun 8

00:50 JPY Final GDP

09:30 EUR Sentix Investor Confidence

Tue Jun 9

07:00 EUR German Industrial Production

13:30 USD Trade Balance

Wed Jun 10

13:30 USD CPI

14:45 CAD Bank of Canada (BoC) Rate Decision

15:30 CAD BoC Press Conference

Thu Jun 11

13:15 EUR European Central Bank (ECB) Rate Decision

13:30 USD PPI

13:45 EUR ECB Press Conference

Fri Jun 12

07:00 GBP GDP/Goods Trade Balance/Industrial Production

15:00 Preliminary UoM Consumer Sentiment/Inflation Expectations