This week begins with a relatively quiet economic calendar but heightened geopolitical concerns, as escalating tensions in Syria over the weekend could weigh on market sentiment in the days ahead.
Inflation Takes Centre Stage Globally
The key focus for the week lies in inflation data and interest rate decisions across major economies.
- United States: The Consumer Price Index (CPI) will be closely monitored, with inflation expected to rise slightly to 2.7% from 2.6%. This figure could significantly influence the Federal Reserve’s upcoming decision on whether to cut interest rates later this month.
- European Central Bank: Across the Atlantic, the ECB is expected to announce a 0.25% interest rate cut. This move is part of a broader strategy to stimulate economic growth and address ongoing challenges within the Eurozone.
Spotlight on UK GDP Figures
In the UK, the economic calendar is relatively light, with Friday’s release of GDP figures taking precedence. Analysts predict modest growth of 0.2%, a welcome improvement from last month’s contraction of -0.1%.
Meanwhile, the pound has performed strongly, gaining ground against both the euro and the dollar. These gains reflect a wave of positive developments that bolstered investor confidence last week, providing a solid foundation for the currency moving forward.
How These Trends Impact Your Business
As inflation figures and interest rate decisions unfold, currency markets may experience notable fluctuations. These movements present opportunities for businesses and investors to optimise their foreign exchange strategies.
If you’re looking to capitalise on market shifts or safeguard your business against currency risk, our team at Qumoney is here to help. Speak to one of our experts today to receive tailored insights and guidance.