Looking ahead to today’s economic releases, Germany’s latest ZEW Business Confidence report is set to be released. Investors will be keen to see how businesses are currently viewing the economic sentiment, markets are forecasting a positive but small rise to 20.1 (from 19.9).
As the week goes on attention will switch to both the UK and US for the major releases of the week.
Consumer Price Index is set to be released early Wednesday morning for the UK. Set to come in at 3.6%, this will be key in setting the tone for Thursdays Interest Rate Announcement.
The US will publish their FED Policy Decision Rate, forecasts are set for no change for the US. With rates at 5.5%, this will be watched with keen eyes as we look to see if there’s any talk of rate cuts for the US.
The UKs latest Interest Rate Announcement will be at noon on Thursday. It is widely expected that there will be no change in the current rate, which sits at 5.25%.
This is a busy week for the UK, with further economic releases coming throughout the week. Retail Sales and PMIs all releasing this week. It is likely that with all the releases this week for the UK, markets may see some increased volatility for the pound.
On the currency front, the pound has continued to hold around last weeks highs against the euro. Whereas the pound has been in a steady decline against the dollar.