After sterling’s recent sell-off, markets will keep a close eye on this week’s UK tier 1 numbers to help define the short-term path forward. The pound has plunged against the US dollar over the last 3 weeks, falling from $1.31 down to lows of $1.2150. The damage against the euro has been limited with GBPEUR pair only falling around 2% from where it was trading 3 weeks ago.
The recent weakness has been fuelled by fears of a material slowdown in the UK economy, driven by rising inflation and interest rates. This week’s economic calendar sees the latest UK inflation print with forecasts predicting a mammoth jump in the pace of price rises. April CPI is set to hit 9.1% after printing at 7% in March.
Also on the calendar this week, UK employment data and retail sales, Eurozone GDP and inflation, US retail sales, Canadian inflation as well as meeting minutes from the ECB’s most recent announcement.
Have a good week.
Written by Viv Savani. 6:53am, May 16th 2022
The details expressed in this market report are for information purposes only and are not intended as a solicitation for funds or a recommendation to trade. Cornhill International Payments limited accepts no liability whatsoever for any loss or damages suffered through any act or omission taken as a result of reading or interpreting any of the above information.