The pound begins the week stronger against a handful of its rivals, compared to this time last Monday, as markets prepare for a mixed bag of economic releases.
Deputy governor of the Bank of England, Ben Broadbent delivered the opening speech at the BoE agenda for research conference in London in the early hours of this morning.
We’ll also see the latest durable goods figures from the US later today. If the figures fall by 3.5% as expected, currency markets are likely to be pleased.
In Brexit news, the prime minister and European Commission President, Ursula von der Leyen, are expected to agree on a new Northern Ireland Brexit deal. The two will meet in Berkshire later today where they are expected to sign off on a new agreement.
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European stock markets were headed for a muted open this morning following weak global sentiment caused by stronger-than-expected US economic data, which bolstered expectations that the Fed will need to remain hawkish in the fight against surging inflation. Investors look ahead to a plethora of eurozone economic reports, including consumer confidence data.
In Asian trading, Chinese stocks slid for the fourth consecutive session following hotter-than-expected US inflation data which boosted expectations that the Federal Reserve will need to continue raising interest rates. The Shanghai Composite fell 0.28% to close at 3,258 while the Shenzhen Component lost 0.73% to 11,702 on Monday.
Other key economic data releases investors will be looking out for over the course of this week include Canada’s monthly GDP figures, the USA’s CB consumer confidence index.
Market-watchers will also be listening out for speeches from central banks, including the BoE’s governor Andrew Bailey, who is scheduled to speak at the cost of living crisis conference in London on Wednesday. Sterling-watchers will be paying close attention to Bailey’s comments as for any clues on the future of monetary policy.
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