Markets kick off the day with the UKs British Retail Consortium (BRC) December retail activity report. It has shown in the report that spending has dropped for the festive period likely due to consumer confidence.
Later today, the EU releases their Unemployment figures where it is expected that the rate of people in the Eurozone who are currently unemployed but seeking work is to remain at 6.5% for the last quarter.
Looking ahead this week, in the UK there we have the release of the GDP figures whereby markets expect it to show some small growth of 0.2% month on month, alongside this release there will be UK Industrial Production reports in Manufacturing where the growth is expected to come in at 0.3%.
The key releases this week will be in the US, where they will release their Consumer Price Index figures. Markets currently forecast there to be an increase to 3.2% which is up 0.1% on this time last year.
Investors will keep a keen eye on the report, with any surprise movement potentially having a heavy impact on the dollar rate.
As for the dollar, the pound has continued yesterday’s rally rising 50 basis points. As for the pound-euro rate, the pound has continued to hold just above the yearly average.