Tag Archives: Financenews

Key UK Economic Data Expected to Move Pound Sterling This Week

With no major economic data on the agenda for today, market attention is set to turn toward some key UK data releases later in the week. Here’s what to watch for and how these updates could impact the British Pound.

Tuesday: UK Labour Market Data

Tomorrow morning, UK labour market figures will be released, shedding light on the Bank of England’s next move on interest rates. Analysts expect the unemployment rate to stay steady at 4.1 percent. The average earnings index, another closely watched indicator, will provide insights into wage growth. Together, these data points will help guide the Bank’s stance on potential rate cuts.

Wednesday: UK Inflation Update for September

On Wednesday, all eyes will be on the UK’s inflation report for September. Economists predict inflation will drop to 1.9 percent from 2.2 percent in August, signaling potential easing in price pressures. If inflation indeed cools, it could sway the Bank of England toward considering an interest rate cut, impacting the value of the Pound.

Thursday: UK Retail Sales for September

To close the week, the UK’s retail sales data for September is due out. A modest decline of 0.3 percent is expected following August’s 1 percent rise. This data will reflect consumer spending trends and provide clues on the health of the UK economy as it heads into the final quarter of the year.

ECB Rate Decision Adds Another Layer of Interest

Adding to the week’s interest, the European Central Bank (ECB) will announce its rate decision. Markets widely anticipate a rate cut to 3.4 percent, a move that could influence the euro and indirectly affect the Pound.

Market Volatility Expected to Rise

After a relatively calm week, the Pound Sterling could see increased volatility with these upcoming data releases.

If you’re looking to navigate these shifts or leverage market opportunities, contact one of our experts for tailored insights on how these changes could impact your business.

Today’s market attention is firmly on the States, with inflation data set to take centre stage. It is expected, CPI inflation will marginally fall to 2.3 percent (previous 2.5%) – investors have been anticipating this release to gauge the Federal Reserves future monetary policy stance.

The Federal Reserve began its rate-cutting cycle in September, beginning with a jumbo 50-basis point cut, which was the first rate cut in the United States since 2020.

US inflation is heading back towards the Bank’s target rate of 2 percent. Markets are now pricing in the likelihood that the Fed will cut interest rates by another 50 basis points until year-end.

Pound Sterling remains in a good position against both the Euro and Dollar. However, dovish comments from the Bank of England’s Governor ‘Andrew Bailey’ with regards to the BoE needing to be more aggressive with rate cuts has hindered GBP strength.

The Pound has continued to outperform this year against the other currencies in the G10, following robust economic growth.

Both GBPEUR and GBPUSD have remained relatively flat, showing little signs of volatility. This stability is largely due to a lack of significant economic data releases this week.

For additional insights on how this could affect your business or to capitalise on market volatility – please reach out to speak to one of our experts.

Sentiment was mixed yesterday. This developed against the backdrop of a peaceful data schedule. At the same time, markets were digesting the latest news from China regarding additional stimulus measures.

Currency-wise, the key FX pairings have been range bound for the past 24 hours. The euro fell marginally following dovish remarks from many ECB members, including the usually aggressive Bundesbank President Nagel.

Although the pound is up at the time of writing, it is still way off its highs and may experience further weakness in the coming days. This comes as UK borrowing costs made the news again after rising notably in recent days, fuelled by market concerns about the Labour government’s budget.

Looking ahead, the data calendar is quiet for the entire European session. Overnight, however, the release of the most recent Fed FOMC meeting minutes will draw attention. Meanwhile, comments from a multitude of Fed officials will be scrutinised.

For additional insights on how this could affect your business or to capitalise on market volatility – please reach out to speak to one of our experts.

Today’s economic calendar is quiet, with no major data releases. Attention shifts to Thursday for the first significant report of the week, when the U.S. will release the Consumer Price Index (CPI) report, the first since the Federal Reserve cut rates by 50 basis points last month. This report could provide important insights into inflation trends and the Fed’s future actions.

Analysts expect the CPI to decline to 2.3%, down from 2.5% year-on-year. This shift might indicate easing inflation pressures, aligning with recent rate cuts. Investors are watching to see if the data supports the Federal Reserve’s policy moves.

In the UK, Friday’s Gross Domestic Product (GDP) report will be the week’s first major release. Growth is expected, and investors are monitoring for signs of economic stability amid currency fluctuations affecting the UK market.

Following recent comments from Bank of England Governor Andrew Bailey regarding interest rates, the pound has fallen against both the US dollar and the euro. The pound/euro rate dropped over 100 points.

The pound/dollar rate has seen a sharper decline, falling nearly 400 points from last week’s yearly high. Markets remain cautious as they await further developments.

For additional insights on how this could affect your business or to capitalise on market volatility – please reach out to speak to one of our experts.