It’s a quiet week for economic releases, with the agenda largely expected to be dictated by political events. The pound is down against the euro and dollar, but, with concerns over the Italian political crisis in the euro, there is a lot of uncertainty on the horizon. Boris Johnson will visit European leaders this week, and the markets will be watching for any hint of a softening in stance from either side.
Tomorrow, Italy’s President will return to address the Senate, and we will see if Salvini’s called-for no-confidence vote goes ahead. If it does pass, and a general election is called, we could be in for a lot more uncertainty as Rome and Brussels square up over Italy’s proposed budget.
The dollar is up this morning, ahead of Jeremy Powell’s speech. He is expected to lay the groundwork for further rate cuts this year.
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