Last week we saw the pound claw back losses incurred following the negative inflation data we saw released at the start of the week, which had indicated that the UK had fallen into negative territory at -0.1% (previously it had been at 0.0%). There was also positivity seen with a decrease in unemployment to 5.4% from a previous level of 5.5%, and the average earnings level was also seen to rise by 3%.
It won’t be a very busy week for data this week, but we will see the Bank of England’s, Mark Carney, give a speech mid-week that may offer hints on the interest rate situation. There will also be net borrowing numbers and retail sales data out, too.
In Europe, EUR held on to the gains it made against the dollar over the course of the week, but relinquished those gained against the pound. The Germans had a poor week because of weak ZEW numbers –the worst figure in over a year – whilst their CPI also underperformed. The whole VW scandal has also put a massive dent in economic confidence levels.
This week, the European Central Bank will release its interest rate statement – which will also tie into the future of QE for Europe. There will also be German and French manufacturing PMI data released.
In the US, the dollar had something of an uphill battle last week on the back of speculation that the forthcoming interest rate hike might be delayed further. We also saw retail sales drop by 0.3%, as well as producer prices which fell in September by the most in a year at -0.5%.
There won’t be much out this week data-wise aside from unemployment claims and building permits. Interest rate speculation will also continue to fuel things as well – but this is starting to look more and more unlikely to happen in 2015.
FC Exchange is a trading name of Foreign Currency Exchange Limited. Registered office: Salisbury House, Finsbury Circus, London, EC2M 5QQ. Registered No.5452483. Authorised by the Financial Conduct Authority (No.511266) under the Payment Service Regulations 2009 for the provision of payment services. HM Revenue & Customs MLR No.12215508. Copyright © 2013 Foreign Currency Exchange. All Rights Reserved.
Recommended Content
Editors’ Picks
EUR/USD holds above 1.0650 after US data
EUR/USD retreats from session highs but manages to hold above 1.0650 in the early American session. Upbeat macroeconomic data releases from the US helps the US Dollar find a foothold and limits the pair's upside.
GBP/USD retreats toward 1.2450 on modest USD rebound
GBP/USD edges lower in the second half of the day and trades at around 1.2450. Better-than-expected Jobless Claims and Philadelphia Fed Manufacturing Index data from the US provides a support to the USD and forces the pair to stay on the back foot.
Gold is closely monitoring geopolitics
Gold trades in positive territory above $2,380 on Thursday. Although the benchmark 10-year US Treasury bond yield holds steady following upbeat US data, XAU/USD continues to stretch higher on growing fears over a deepening conflict in the Middle East.
Ripple faces significant correction as former SEC litigator says lawsuit could make it to Supreme Court
Ripple (XRP) price hovers below the key $0.50 level on Thursday after failing at another attempt to break and close above the resistance for the fourth day in a row.
Have we seen the extent of the Fed rate repricing?
Markets have been mostly consolidating recent moves into Thursday. We’ve seen some profit taking on Dollar longs and renewed demand for US equities into the dip. Whether or not this holds up is a completely different story.