Today’s economic calendar kicks off with the Eurozone Consumer Price Index. Investors are eager to see if the recent interest rate cut has made an impact, with markets anticipating a slight drop to 2.5 percent from 2.6 percent.
Attention then shifts to major speeches this afternoon from European Central Bank President Lagarde and Federal Reserve Chairman Powell. Their remarks could offer valuable insights into future monetary policy.
The rest of the week is dominated by US data, which might pressure the pound further against the dollar. Key US releases include the ISM Non-Manufacturing Survey on Wednesday and the Non-Farm Payrolls on Friday.
Political events are also in the spotlight, with the UK general election on Thursday. The uncertainty surrounding the potential for a Labour government is expected to create currency market volatility.
Following the UK election, the second round of the French elections begins on Sunday, likely causing additional market fluctuations as we head into next week.
On the currency front, the pound remains below the 34-month highs seen in June. With limited UK data and the general election this week, there could be opportunities to leverage limit orders. Meanwhile, the dollar is poised to gain further strength against the pound following the week’s data releases.
For more insights on how these developments could impact your business or to capitalise on market volatility, please reach out to one of our experts.