Sterling begins the week stronger than it did this time last Monday with gains of around 0.83% and 1.41% against the euro and US dollar, respectively. This comes after last week’s revelation of the eurozone being in a technical recession, which prompted GBP/EUR to soar close to its 2023 high reached on June 1st.
On the data front, today is a quiet one for high-impact economic releases, with only the US budget statement for investors to digest. However, things take a drastic turn from Tomorrow, with several releases scheduled in for all three of our key currency zones.
Market watchers will also have the latest US inflation and UK GDP figures to look forward to, as well as interest rate decisions from the European Central Bank and US Federal Reserve. Read on for Central Bank predictions.
US stocks were mixed at the end of last week. Investors saw the blue-chip Dow Jones fall close to 50 points, while the S&P 500 climbed higher after entering bull market territory (a market where share prices are rising which encourages buying) the day before.
The Nasdaq on the other hand, added 0.5% as investors shied away from making any big bets ahead of the latest US inflation data and FOMC decision next week.
Over in Canada, Friday’s high unemployment data saw the Canadian dollar fall from its two-month high against the US dollar hit on June 8th. The country’s domestic jobless rate rose to 5.2% in May, marking the first increase since August of 2022. Economists suggest this means Canada’s labour market is finally feeling the after effect of the BoC’s aggressive tightening cycle.
Spain’s consumer confidence indicator for May rose to 81.5, above market expectations of 75, marking the highest levels of consumer confidence since the onset of Russia’s war in Ukraine last February.
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