Cabinet Reshuffle On The Cards

Today we expect Theresa May to announce a reshuffle among her cabinet, promoting some and letting some others go in what could prove further political unrest for the ailing pound.

Following Damian Greens exit before Christmas, Justine Greening is among those thought to be at risk, with rumours circling that Jeremy Hunt may be promoted to fill the gap, a move certain to anger Labour as the NHS wains.

We will find out the movers and shakers as the day goes on, but for certain it will cause some the pound some jitters as markets digest the ins and outs of Theresa Mays changes and omments made to the BBC’s Andrew Marr over the weekend.

Last Week’s Trading

Last week we saw a strong finish for sterling, which ended up near the top of its current range, half a cent up against the euro and US dollars, but overall, nothing much happened last week.

Manufacturing and construction PMI were both under expectations while services came out above for the UK, whilst EU and US data all beat forecasts. The US non-farm payrolls came in way under the analyst forecast, paving the way for the dollar weakness we saw on Friday, adding to the struggling dollars recent performance. As a result of this, the euro hit fresh monthly highs reaching the key 1.2 mark.

The Week Ahead

There a a handful of mid level releases to look forward to, all of which may have an impact on exchange rates over the week.

Monday – EU consumer confidence and retail sales.

Tuesday – German import/export and trade balance. EU unemployment.

Wednesday – UK industrial and manufacturing production figures, NIESR GDP estimate for the UK.

Thursday – Bank of England credit conditions survey, ECB accounts meeting, US jobs data.

Friday – US retail sales and inflation

Some market movers for sure, plus the cabinet reshuffle to look out for this week so if you have a transfer to make, give one of the team a call today to discuss your options.