Euro drops on stimulus speculation
- Posted by currencies in Bank of England, Brexit, Currency, Dollar, Economy, EUR, GBP, Sterling, UK, Uncategorised
- October 16, 2017
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The euro slipped this morning after posting its biggest weekly rise in a month as traders took profits, though markets were wary of chasing the currency lower before a European Central Bank policy meeting next week.
With some political uncertainty in the form of an approaching deadline over Catalonia’s bid for independence and Austria’s election outcome, investors moved to the side-lines.
Catalan leader Carles Puigdemont until this afternoon to clarify whether he is calling for the region’s independence from Spain, with Madrid threatening a return to direct rule if his stance remains ambiguous.
Austria’s young conservative star Sebastian Kurz is on track to become the country’s next leader after an election on Sunday. He will likely seek a coalition with the resurgent far right as his party is far short of a majority.
Key data from the UK this week is the Consumer Price Index (Inflation) data released tomorrow morning at 9:30 am. The figure is expected to be 3%, if the figure matches the expectation then we should see the pound boost as this increases the chance of a UK rate rise imminently.
However, if this comes in lower that expectations we pound should drop off! The data will be a definite market mover – for more info on this please contact your analyst here at Currencies 4 You.
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