Sterling had a relatively quiet week this week compared to last as GBP/EUR traded between 1.115-1.125 all week. GBP ended the week positively with stronger than expected PMI data and a lukewarm reaction to the EUs draft Brexit proposal. The main data release this week is the UK budget report presented by the treasury chancellor on Tuesday. This will detail economic forecasts for the next year and investors will be keeping a very close eye on this with markets being volatile leading up to Tuesday. If you are looking to buy Sterling, it could be a good idea to get it done before Tuesday as any negative news will be magnified with the ongoing Brexit situation.
The Eurozone has been at the centre of a trade war this week with the US as Donald Trump announced strict trade tariffs on US imports of steel and aluminium. The US President dismissed concerns on a potential war claiming the US would win this easily. Despite this EUR/USD ended the week at the same level it started (1.23). Looking ahead for the week all the attention will be on the Eurozone’s response to Trumps tariffs and any Brexit news coming out. With so much that could go wrong for the Euro at the moment now could be a good time to sell Euros if you have an upcoming transfer whilst it still remains strong.
The US president Donald Trump had a busy week last week. As well as the new tariffs imposed, he also unexpectedly announced on Thursday that he will meet with North Korean leader by May. The historic meeting will be the first time in history the leaders of the two countries will meet. In a move that has been heavily criticised, Trump is hoping this meeting will be a long way to North Korea ending its nuclear weapons programme. The Consumer Price Index (YoY) released on Tuesday will have some impact on the USD this week, but markets will be mainly moved on where Trump’s stance on the trade war goes with the Eurozone as this could have massive repercussions for on both sides of the Atlantic for the strength of both currencies.
Monday: NZD: RBNZ Governor Grant Spencer speech
Tuesday: GBP: Budget report
USD: Consumer Price Index (YoY)
CAD: BoC Governor Poloz Speech
JPY: BoJ Monetary Policy Meeting Minutes
Wednesday: EUR: ECB President Draghi’s speech
USD: Retail Sales ex Autos (MoM)
Thursday: CHF: SNB Interest rate decision
Friday: EUR: Consumer Price Index (YoY)