The weight of last week still lingers on sterling’s shoulders. While the pound is weaker against the euro, it still maintains its monthly gains against the single currency. Against the greenback, sterling is stronger compared to this time last week however it is weaker on a monthly comparison.
Investors will have their plates full with data this week as there are lots of key economic releases scheduled in between now and Friday, which could impact currency movements.
Ambulance strikes due to take place across the country on Monday and Wednesday have been suspended. Head of operations of Unite Union, Gail Cartmail, said that, “following further assurances from the government over the weekend Unite has in good faith agreed to pause the strike action.” Cartmail also warned that if the government did not meet “further assurances” made over the weekend, “strike action will resume”.
It’s a busy week for some central banks across the globe. Later this afternoon in Germany, member of the Executive Board of the Deutsche Bundesbank, Burkhard Balz, will speak on inflation. The Bank of Canada will release its interest rate statement on Wednesday, while several members of the European Central Bank will deliver speeches on inflation.
Those watching the aussie dollar will also be listening closely to the Reserve Bank of Australia, as governor, Phillip Lowe will deliver a speech on Tuesday. Investors will be listening keenly for any clues on interest rates during Lowe’s 9:55pm speech (UK time).
We’ve just seen the latest PMI for France, Germany and Italy. The data was mixed, with some results coming in lower than markets expected (i.e. France’s PMI which fell to 45.2 in February 2023 from a four-month high of 48.4). Up next, we’ll see the latest retail sales for France and on Tuesday we’ll see the latest Halifax house price index from the UK.
Tomorrow in Washington DC, chair of the United States Federal Reserve, Jerome Powell, will testify in front the Senate Banking Committee on the Semi-Annual Monetary Policy Report. Any hawkish comments from Powell are likely to boost the dollar so market watchers will be listening closely.
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