Market Report – 03.07.2017
It was yet another unsteady week for Sterling, with heavy losses followed by a slight recovery heading into the weekend leaving many concerned about the direction the UK is taking under a fragmented government, trying to negotiate the separation from the EU.
Much of the focus was on whether the Queen’s Speech would be passed through Parliament. Theresa May was able to breath a huge sigh of relief as it was passed by 323 votes to 309.
Sterling’s value has deteriorated with the political and economic uncertainty created by the election result and a difficult start to Brexit negotiations.
The EUR still sits close to a three year high against Sterling. One of the reasons for the EUR’s improvement were comments made by European Central Bank president Mario Draghi, who indicated that the current monetary policy programme was having a positive effect on the Eurozone economy. This means that we could see the current quantitative easing wound up when the extended deadline is reached at the end of this year.
Important date releases.
GBP – Bank of England Governor Mark Carney speech
GBP – Inflation Report Hearings
EUR – Non-monetary policy’s ECB meeting
EUR – ECB Monetary Policy Meeting Account
USA – Unemployment rate