Pound sees gains reversed with busy week ahead for exchange rates

Sterling’s positive gains over the past few weeks came to an abrupt end last week on Thursday as the ECB president Mario Draghi announced that they were not going to extended their QE programme which is set to expire in March next year. There was an expectation that the programme would be extended further to run until September but will carry on until March as planned although this could change during the next few months. The Euro reacted positively to the ECB’s announcement and gained over a cent on the Pound. Sterling has since not shown any sign of recovery and this could be the return of sterling’s demise. With the Brexit uncertainty still heavily on the agenda in the house of commons and amongst the public and media sterling continues to be overlooked by investors and is subsequently losing ground to its major competitors.

This week sees The Bank of England governor Mark Carney address the Interest rate decision for the UK. This is expected to remain the same however if there is a change this would more likely be a negative one as the market is still expecting a rate cut before the end of year which could be this meeting or in November. Inflation data is also set to be released this week from the UK, Eurozone and the US so with important data being released this week it is worth keeping your eye on the market and keeping in touch with your account manager here at currency index to prevent any surprises and losing out in these uncertain times.

This week’s key data releases:

Tuesday

09.30am – CPI – UK

09.30am – Producer Price Index – UK

10.00am – ZEW Survey – Eurozone

19.00pm – Monthly Budget Statement – US

Wednesday

09.30am – Claimant Count rate – UK

10.00am – Industrial production – Eurozone

13.30pm – Import and Export figures – US

23.45pm – GDP – NZD

Thursday

02.30am – Employment figures – AUS

08.30am – SNB interest rate – Switzerland

09.30am – 09.30am – Retails sales – UK

10.00am – Trade Balance – Eurozone

10.00am – CPI figures – Eurozone

12.00pm – Interest rate decision – UK

13.30pm – Retail sales – US

14.15pm – Industrial production – US

Friday

13.30pm – CPI figures – US

15.00pm – Consumer Sentiment Index – US