Both the Bank of England and the Federal Reserve are due to hold their monetary policy meetings this week and all attention will be on comments from officials on both sides of the pond. Whilst no major announcements are expected, any rhetoric regarding interest rates and the economy could impact currencies.
This week will finish with the German election, which is due to take place on Sunday. There are strong expectations of no clear winner, resulting in a coalition. The government could, therefore, take months to form, during which time Chancellor Merkel may adopt a ‘caretaker’ role.
A series of PMI data will also be released this week for the UK, Eurozone and US, giving an indication of how each economy has performed in September.
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