This week has kicked off with a series of mixed data releases, ongoing trade tensions, and growing anticipation ahead of key central bank announcements. Here’s what’s moving the markets.
UK House Prices Edge Higher
This morning’s UK House Price Index data showed a modest 0.1% rise month-on-month, with prices up 3.5% year-on-year.
While not a dramatic increase, it continues to reflect a steady recovery in the UK housing market amid improving economic sentiment.
Mixed PMI Results from France and Germany
PMI figures released earlier for France and Germany painted a mixed picture:
- France posted a positive reading, suggesting expansion
- Germany slipped into contraction territory with a negative result
These results highlight ongoing divergence within the euro area’s largest economies and may influence the tone of the ECB’s upcoming policy statement.
US Construction and PMI Data Due Later
Later this afternoon, attention shifts to the United States, where markets will digest new PMI and construction figures.
These reports will help set the tone ahead of Friday’s key Non-Farm Payrolls release – a major indicator for US labour market health.
ECB and US Payrolls Take Centre Stage This Week
The European Central Bank (ECB) meets on Thursday, with a potential rate cut already priced in by many analysts.
Then on Friday, the US Non-Farm Payrolls report will be released, likely providing further clarity on the Federal Reserve’s monetary policy direction.
Dollar Weakens Amid US-China Trade Frictions
Over the weekend, new US-China trade tensions emerged, with China accusing the US of failing to meet trade agreement commitments.
The renewed friction has weakened the dollar and rattled broader market sentiment, giving a lift to the euro as investors shift focus.
Stay Informed with Qu Money
From housing data to central bank decisions and global trade tensions, the coming days could bring sharp currency moves.
For expert advice on navigating volatile FX conditions or managing currency risk for your business, get in touch with a Qu Money specialist today.