The European session begins with German consumer confidence, Spanish GDP and Eurozone money supply and lending figures. These are unlikely to be major standalone market movers, but with the euro having come under pressure recently, any significant surprises could add to volatility.
For sterling, attention turns to Bank of England Governor Andrew Bailey, who is due to speak at 10:15am. Markets will be listening closely for any comments surrounding inflation and the future direction of UK interest rates.
At 1.30pm, US Durable Goods Orders are released. Headline orders are expected to fall by 0.3%, following the previous 1.1% increase, while Core Durable Goods Orders are forecast to rise by 0.6%. A stronger-than-expected reading would provide further evidence of resilience within the US economy and could offer additional support to the dollar.
This is followed at 3pm by US Consumer Sentiment and inflation expectations. Inflation expectations will be particularly important given the market’s continued focus on the Federal Reserve and the future path of US interest rates. Strong US economic data combined with elevated inflation expectations could support further USD strength, while weaker figures could see some of the dollar’s recent gains given back.
GBP/EUR 1.1610 GBP/USD 1.3228 GBP/AED 4.8611
GBP/AUD 1.8829 GBP/CHF 1.0972 GBP/CAD 1.8718
GBP/NZD 2.3360 EUR/USD 1.1378 GBP/ZAR 21.6099