Markets Braced for Key Week.

With Large data releases looming the currency markets brace for a potentially turbulent week whilst it still recovers from the ECB rate hike last Friday.

GBP (British Pound): The focus for GBP is fixed on tomorrows releases of both the consumer price index along with the producer and retail indexes. These will provide insight into how well the BoE’s rate hikes are helping to combat inflation and will influence future rate decisions.

Wednesday’s releases will have an influence on the BoE’s Interest rate decision on Thursday. Currently the consensus is for the BoE to hike rates by another 25 basis points to 5.5%.

EUR (Euro): The EUR today will be focused on the release of Core Harmonized Index of Consumer Prices index which helps to gauge inflation and purchasing trends helping to inform policy makers.

Looking ahead to this week the Euro will be heavily influenced by Fridays slate of PMI releases for the Eurozone. This will show how both the manufacturing and services sectors are performing throughout the Eurozone.

USD (United States Dollar): The USD continues it quiet start to the week with the only piece of data being the release of  US Building Permits. These figures show the amount of permits given out to construction projects and tends to show where corporate investments are being made.

Wednesday is the main day of focus for the USD as the Fed’s interest rate decision is released. With the expected holding of rates at 5.5% this will put a lot of weight on the tone on the monetary policy statement to help gauge how the US is dealing with inflation and the outlook going forward.

Finally, on Friday we also have PMI released for the US as well which will help to understand the overall health of the US servicing and manufacturing sectors.

Economic Calendar