14th May 2018 Market Update
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?? GBP – There was a quiet end to the week for all majors, including Sterling as there was a lack of data. Over the weekend the UK had a boost as Norway’s Prime Minister appeared to back the UK adopting a Norway style deal after it has left the European Union. This could help the UK further down the line as negotiations progress. However, this had no direct impact on the exchange rates.
Today there is no data from the UK of note. This week the UK will be in the limelight on Tuesday as average earnings and the inflation report hearings will be announced. Average earnings are expected to drop slightly to 2.7%. Depending on this data and the nature of the report, it could signal if an interest rate rise is likely in the next couple of months.
?? EUR – It was a very quiet end to last week for Europe, however the euro benefitted from weak CPI and Core CPI from the US on Thursday which both came in below market expectations.
Today there is no data from Europe. Flash GDP data for the quarter is released on Tuesday and final CPI for the eurozone is released on Wednesday and is expected to come in at 1.2% – this is most important data from Europe this week. 1.2% is still too low for the ECB to be encouraged to begin a hiking cycle though.
?? USD – Friday afternoon preliminary consumer sentiment came out in line with expectations having minimal market movement. Like Europe and the UK, there is no significant data from the US today. The only thing of relevance is that FOMC Member Mester is due to speak at a Central Banking Series this evening, however this not likely to cause any market movement.
Retail sales is being released on Tuesday, and building permits released on Wednesday. These are the most important bits of data for the US this week.
No key announcements today.
Summary: There is a very quiet start to this week with no particularly relevant data out today. The main highlights this week will be average earnings and the inflation report hearings from the UK on Tuesday. Flash GDP and CPI is released from Europe on Tuesday and Wednesday respectively. Retail sales is released from the US on Tuesday and building permits Wednesday. This week will probably be relatively quiet and rates will stay within current ranges.
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