Market Report 21/05/2018
The pound fell against most of its peers last week as the currency was weakened by further EU border measures.
Sterling look to be extending its losses this morning as GBP/EUR slips to €1.1439.GBP/USD appears to be sliding again this morning as it continues to drop from last week’s lows at $1.3414
Looking ahead the euro looks poised have a quiet day today as it is a bank holiday in most of Europe.
Brexit uncertainty continues to bear heavily on the pound on as the govt dismissed reports the that it was planning to stay in the EU customs union past the agreed time frame (2021).
GBP/EUR was prevented from suffering huge losses during the session, as markets become increasingly concerned that the new majority government in Italy could disturb Eurozone integration.
Markets dread the new ruling alliance as it may look to deeper euro zone incorporation, while also asking for the ECB to forgive up to €250m of the nation’s debt.
During this announcement Cable (GBPUSD) slumped around half a percent on Thursday, as the greenback was lifted by stronger than expected manufacturing figures.
The Dollar was boosted with his news, which pointed to a narrowing labour market, helping to further boost US rate prospects.
9:00 – 22/5 – inflation Report Hearings (GBP)
8:00– 23/5 – RBA Governors Speech – (AUD)
8:30 – 23/5 – PPI – UK – (GBP)
8:30 – 23/5 CPI – UK – (GBP)
18:00 – 23/5 FOMC Minutes (USD)
8:00am – 24/5 Carneys Speech – (GBP)
13:20 – 25/5 – Carneys Speech – (GBP)
Busy week ahead for the pound which could see some unwanted volatility. If you have an upcoming requirement which you are looking to get done sooner rather than later it would be wise to contact your dealer today to see how we can help.