Despite a choppy entrance to the New Year for GBP/EUR, the pound is only marginally weaker than it was this time last Friday. It is a similar story for sterling versus the dollar, which started 2023 with a small but sharp readjustment downwards this morning.
This week, market watchers look forward to lots more key data releases than the UK has seen in recent weeks. The first will be the S&Ps PMI (final) at 10:30am, while on Wednesday BoE consumer credit and mortgage lending will be released. Economists will be watching closely to see how this fresh set of data releases impact the pound’s movements over the course of the coming days.
The British Medical Association (BMA) has warned that pressure placed on the NHS following the recent wave of strikes is “unsustainable” and “intolerable”. Yesterday, BMA Chair, Professor Phil Banfield, called on the UK government to “step up and take immediate action” to solve the current crisis.
The ongoing war in Ukraine continues to develop, entering a new phase at the start of the year. It is reported that deadly explosions hit the city of Kyiv on New Year’s Eve. The attacks happened just two days after one of Russia’s largest air strikes against Ukraine since the start of the war.
Compared to this time last week, the US dollar is marginally weaker than the euro but up on sterling ahead of several key data releases scheduled over the coming days. At 3:45pm UK time the S&P PMI (final) will be released, followed by construction spending at 4pm.
Economists are especially poised for America’s JOLTs which will be released tomorrow.
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