Last week saw the pound take a small dip at the beginning of the week coming down to 1.163 on Tuesday morning after the suggestion of an interest rate cut, at the next Bank of England Decision meeting, sterling did however recover back to its previous level of 1.173 GBP to the euro
In the week to come there are a few pieces of data to keep an eye on; the first being the Office of National statistics releasing the National Unemployment Figures. This will be released at 09:30 tomorrow, a rise in this rate normally means a lack in expansion and can have a negative effect on the pound.
Tomorrow will also see the release of the average earnings with and without bonus and this can be a short-term indication of how the economy will fair, and a raise in this data is normally seen as bullish for sterling since the average earning has increased over the last three months. On Friday the PMI data will be released at 09:30 which many will want to see a positive trend in order to balance out the lower than expected retail figures which were realised last week and the potential for a rate cut.
The euro could be in for a rough ride on Thursday with the release of the interest and deposit rate decisions by the European Central Bank, changes to either of these pieces of data could cause volatility in the euro, a lack of change can be seen as a negative turn as there is nothing positive to report. After the data realise there will be a statement and a press conference where, depending on how the ECBs President comments come across can influence the strength of the euro. Keep in touch with your account manager to keep on top of the day's events.
On Wednesday Federal Housing Finance Agency will realise the Month on Month Housing Price Index, this data is seen as very informative when looking at the position of the overall economy and therefore the strength of the USD, the higher the number the higher the chance of strength in the dollar, after the price index there is also the release of the home sales this also shows how the housing market is getting along in the currency market climate.
Another marker on the strength of the US market will be on Thursday when the initial jobless claims come in, this is the people filling in first time claim forms, a high number will show a weakness in the market as less people will be working in the labour market consequently producing less for the country this can have then have a negative effect on the strength of the USD.
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