Yesterday saw a steady stream of data releases. The Eurozone EC sentiment indices for June painted a familiar picture to the previous week’s PMIs, indicating a slowdown in activity as we near the end of Q2. Despite this, the data didn’t significantly impact the currency market.
Today, the focus is on inflation. The Eurozone will see flash HICP inflation estimates for June from France, Italy, and Spain. In the United States, we’ll get the Fed’s preferred inflation gauge, core PCE, for May. These releases carry event risk for their respective currencies, as central banks are particularly focused on inflation indices.
Looking ahead to next week, the French and UK elections are poised to significantly impact the pound sterling and the euro. Markets have a clear idea of potential outcomes, and if their predictions hold, the Pound-Euro exchange rate might remain stable at current levels.
In the UK, the outcomes are considered low risk, even if the Conservatives, led by Rishi Sunak, achieve an unexpected victory. Meanwhile, the French parliamentary vote promises to be more intriguing, with various risk scenarios that could influence market movements.
For more detailed insights on how these events could affect your business or to take advantage of market volatility, please reach out to speak with one of our experts.