Lack of data may threaten sterling gains

17 September, 2018

Paul Newfield

Last week, the pound managed to make gains of around a cent against the euro and a couple of cents against the greenback. The majority of ecostats that came in over the week were actually better than expected, with only industrial and manufacturing production down on the previous months’ level. Current levels are under threat however as there are no published figures from the UK until Wednesday, giving the other two major currencies a chance.

The UK government is still split over Brexit plans, with many Brexiteers in dispute with the PM over the Irish border conundrum, with Boris Johnson particularly vocal about her plans, criticising her strategy to leave the EU. Mr. Johnson has said the plan formed at Chequers, “would mean for the first time since 1066 our leaders were deliberately acquiescing in foreign rule”. Mrs May has however declared that it will be her Brexit plan or no Brexit deal at all – according to a COMRES survey, 50% of adults feel the outcome of Brexit will be negative, whilst 41% feel it will be positive.

Major US data this week:

  • Building and housing 1:30pm Wednesday
  • Employment and home sales – 1:30pm, 3pm, Thursday
  • Markit Services PMI – 2:45pm, Friday

Major UK data this week:

  • MPC Haldane speech 9am Wednesday
  • RPI 9:30am Wednesday
  • CPI 9:30am Wednesday
  • Retail sales 9:30am Thursday
  • Public sector net borrowing 9:30am Friday

Major Euro data this week:

  • CPI data 10am Today
  • ECB Couere speech 10am today
  • ECB Praet speech 12:15pm today
  • ECB Mersch speech 2pm today
  • ECB Draghi speech 8:15am Tuesday
  • ECB Draghi speech 2pm Thursday
  • EU leaders summit Thursday
  • German and EU PMI inflation 8:30am, 9am, Thursday

So, the financial side of Brexit seemingly high on the list of discussion this week, with lots of speeches from ECB and MPC members. As ever there is always the distinct possibility of significant volatility, so make sure your cost doesn’t increase and book in your currency today, using one of the many types of contract deals we offer. Talk to one of our specialists today about our spot, forward or limit order currency transfer options.