Today’s key economic event is the release of the U.S. Retail Sales report. Markets anticipate a decline in sales month-on-month, expecting a drop to -0.2%, down from last month’s 1%. This report is closely watched as it provides insight into consumer spending trends.
Once the U.S. Retail Sales report is out, attention will shift to the UK on Wednesday, when the country is set to release its inflation figures. The forecast indicates no change, with inflation expected to hold steady at 2.2%. This data is crucial, as it will influence the Bank of England’s interest rate decision on Thursday.
The most anticipated event this week is the U.S. Federal Reserve’s interest rate announcement on Wednesday evening. Markets are currently pricing in a 50 basis point cut, which could have significant implications for the global economy.
In anticipation of this announcement, the pound has strengthened against the U.S. dollar. However, further volatility is expected around the release of the Federal Reserve’s decision, which could lead to notable market movements.
Meanwhile, the pound-to-euro exchange rate has remained relatively stable, showing little fluctuation despite ongoing market developments. This stability contrasts with the pound’s movement against the dollar.