Sterling has climbed to its strongest position against the euro this year, in a big week for the pound, with an interest rate decision on Thursday. It is similarly strong against the US dollar and 1% up on last Tuesday.
On the data front, investors will have plenty on their plates to digest between now and Friday, with several high-impact economic releases scheduled in. For pound watchers, the spotlight will be on UK inflation and GDP.
According to the Centre for Economics and Business Research, the Coronation weekend, with its extended pub opening hours on Sunday, provided an expected £104m to Britain’s economy. Researchers said that Sunday’s warmer weather may have been a key factor in helping to boost revenue for the hospitality sector.
Tomorrow, eurozone markets will see the latest industrial production data for Italy. In the last release, Italy’s industrial production fell by 0.2%, missing market expectations of a half a percent rise. Economists are predicting this week’s monthly figures to be a little less pessimistic.
The Spanish stock, IBEX 35, outperformed its eurozone peers yesterday, climbing by 0.7%. Banco Santander also gained 1.2% after launching a holding company which aimed to bring together its global insurers.
Across the pond, the US Federal Reserve’s (Fed’s) economist and member of the Board of Governors, Philip Jefferson, is due to deliver a speech at lunchtime today. This follows the Fed’s tenth interest rate hike last week, which brought US borrowing costs to their highest level in well over ten years.
US stocks remained under pressure with mixed results on Monday, ahead of Wednesday’s inflation data. The Dow Jones closed over 50 points lower yesterday, while the S&P 500 finished marginally higher. The Nasdaq also edged up gently—by around 0.2%.
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