Brexit Deadline

The week ahead is a busy one on the currency markets, with plenty of critical data due out across many of the world major economic zones. We will see GDP figures from Europe and the UK, Interest Rate decisions and policy statements from Europe and Canada, and various other data releases including UK Industrial and Manufacturing production and US Inflation data.

Over the past few months the day to day economic data has had less impact on the currency markets, as the overriding concerns over the ongoing pandemic, civil unrest in the US and the ever present spectre of the Brexit negotiations, all took centre stage and dominated the markets. However as we start getting back to some sort of normality and as we all await news of how badly the economies of the world have been affected by the various pandemic lockdowns, we can expect to see general economic data releases start to impact the market more and more. How badly have retail sales been affected, are house prices still rising, what impetus will the various central banks put into the market to help their local economies? These are all questions we can expect to see the markets asking, and the answers can and will move exchange rates.

In addition we do still have the ongoing pandemic to contend with as well as Brexit negotiations, with news this morning that the UK is preparing to draw up legislation to cancel some aspects of the previously agreed Brexit Withdrawal Agreement, to aid in No Deal preparations. It seems the chance of a No Deal situation is ever increasing and as such those with a currency requirement over the coming months, should be keeping a very close eye on what is occurring. The expectation is that a No Deal will lead to a significant drop in Sterling’s value, which could make your currency purchase much more expensive.

Options do exist to protect against negative market movement, so get in touch with your Currency Consultant today to discuss how we can help to protect you from a volatile market.

Monday

German Industrial Production

UK House Price Data

UK Retail Sales

Tuesday

German Trade Balance

European GDP

UK Inflation Hearings

Wednesday

Canadian Interest Rate Decision

Thursday

UK GDP Estimate

European Interest Rate Decision + Monetary Policy Statement

US PPI

US Jobless Claims

Friday

UK Industrial Production

UK Manufacturing Production

UK GDP

US CPI Inflation