UK: Weekly FX Market Update 8 September
GBP
Deputy PM Rayner is forced to resign, yet another issue for the beleaguered government.
The Budget will be announced on November 26th. Does that mean that we will see a series of ‘floated ideas’ regarding tax hikes as Chancellor Reeves decides which direction to go next?
UK GDP is released on Friday. Will it continue to slowly expand and support the pound?
EUR
The French minority government could lose Monday’s vote of confidence.
So far, the market has ignored the French turmoil, but will this continue?
The ECB sets rates on Thursday. With German CPI at +2.3%, does this provide the backdrop to hold rates steady?
USD
US 30-year Treasury yields tested higher at 5%, but got rejected.
US CPI is released this Thursday. Will it provide the Fed with a reason to avoid cutting rates on Sept 17th?
As the fight between Trump and the Fed continues, governor Cook sues to stay in position. Will investors take fright at this fight over control of the Fed?
Main events for this week:
Mon Sep 8
09:30 EUR Sentix Investor Confidence
Tue Sep 9
00:01 GBP BRC Retail Sales
12:30 EUR Bundesbank President Nagel Speaks
Wed Sep 10
13:30 USD PPI
Thu Sep 11
13:15 EUR ECB Interest Rate Decision/Statement
13:30 USD CPI/Unemployment Claims
13:45 EUR ECB Press Conference
Fri Sep 12
07:00 GBP GDP/Goods Trade Balance/Industrial Production
09:30 GBP Consumer Inflation Expectations
15:00 USD Prelim UoM Consumer Sentiment/Inflation Expectations
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