Weekly Market Report – 11/07/17

Pound Edges Forward

Sterling advanced against all its major counterparts before a speech by Bank of England Deputy Governor Ben Broadbent, which investors and traders alike will scour for clues of his position amid a split between members of the Monetary Policy Committee.

The pound has been enhanced in recent weeks amid signs of a hawkish shift among BOE policy makers, who voted 5-3 to maintain interest rates at a record-low in June. That’s left markets currently pricing in a more than 60 percent chance of a 25-basis-point hike by the end of this year. Broadbent, who is scheduled to speak at 1:30 p.m. in Aberdeen, Scotland, sided with the majority at last month’s meeting, and has not made any public statements since.

Las Friday, saw Non-Farm Payroll data showed that the US economy is adding jobs at a faster rate than expected and in the UK, inflation is well above the 2% target / limit, largely due to a Brexit-weakened Pound, which has driven up both core and non-core inflation. Both these spectacles speak to higher rates in future. Hawkish commentary has triggered chaos in bond/equities markets because rising interest rates make bonds/futures less attractive


11:00    GBP Inflation Report Hearings REPORT

09:30    GBP Average Earnings excluding Bonus
09:30    GBP Average Earnings including Bonus (3Mo/Yr) (May) – 2.1%
09:30    GBP Claimant Count Rate (Jun) – 2.3%
09:30    GBP Claimant Count Change (Jun) – 7.3K
09:30    GBP ILO Unemployment Rate (3M) (May) – 4.6%
11:00    EUR Industrial Production s.a. (MoM) (May) – 0.5%
11:00    EUR Industrial Production w.d.a. (YoY) (May) – 1.4%
19:00    USD Fed’s Beige Book REPORT

07:00    EUR Consumer Price Index (YoY) (Jun) – 1.6%
09:30    GBP BOE Credit Conditions Survey REPORT
13:30    USD Producer Price Index (YoY) (Jun) – 2.4%
13:30    USD Initial Jobless Claims (Jul 3)
13:30    USD Continuing Jobless Claims (Jul 3)

11:00    EUR Trade Balance s.a. (May) – €19.6B
11:00    EUR Trade Balance n.s.a. (May) – €17.9B
13:30    USD Retail Sales (MoM) (Jun) – 0.3%
13:30    USD Consumer Price Index (YoY) (Jun) – 1.9%
13:30    USD Consumer Price Index Ex Food & Energy (YoY) (Jun) – 1.7%
13:30    USD Consumer Price Index (MoM) (Jun)

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