GBP
As we approach the end of August, the UK economic calendar is set to enjoy a subdued week. Over the course of the week, there is only one high-rated data release.
The UK PMI data tomorrow which will be closely watched after the Bank of England warned earlier this month of a 15-month recession starting from the end of this year.
USD
USD strengthens against the GBP as the UK consumer confidence score remains at a historic low due to soaring food and fuel prices and rising interest rates.
This week’s highlight includes the Jackson Hole Economic Symposium which is an annual central banking gathering.
Remarks from US Fed Chair Powell on Friday will be closely analysed as markets assess the outlook for monetary policy The message from Powell will probably be hawkish with the near-term priority to tackle high inflation. A further rise in US policy interest rates of 50bp or 75bp is expected next month.
EUR
The euro briefly fell back below parity against a robust dollar this morning and was languishing at five-week lows, weighed down by concern that a three-day halt to European gas supplies later this month will exacerbate an energy crisis.
German IFO business survey and the published minutes of the ECB’s July policy meeting when it raised interest rates more than expected by 50bp both are due on Thursday.
If you or your company are impacted by currency risk please reach out to speak to one of our experts, we can assist with decision-making during this difficult time to help you protect your profits.