Market Update

Last week was pretty busy on the macroeconomic front with Fed minutes, the ECB confirming a rate cut from June and plenty of economic data- however, this was all over shadowed by the escalating Middle East conflict with Iran launching a drone attack on Israel. The reality of such events is that it throws the market into disarray, and as this happened over the weekend, we will not be able to see any material effects until Monday morning on the market, what we have seen so far is the market de-risking into Friday’s close, and crypto currencies had a large draw down on Saturday- this resulted in the Dollar strengthening considerably by market close.

Essentially, the main thing to watch out for is any escalation or de-escalation in the Middle East this week, as this could lead to sharp moves on the market, however, we will still need to keep an eye on economic data, as when the dust settles, that is what we will always come back to.

On Monday we have European Industrial production data for February in the morning, followed by Retail Sales data from the U.S in the afternoon, Monday we expect to be more reliant on news as opposed to data as it is a relatively quiet day on the data front, so we will be led by the news on Monday.

On Tuesday we have UK employment data alongside average earnings, followed by EU ZEW economic sentiment, which should give us an interesting start to the day depending on how these releases come out, later in the afternoon we have US building permits and industrial production data which are expected strong which could keep strength in the Dollar.

On Wednesday we have UK inflation data- this is an important release as inflation does seem to be creeping up, any release over 4.5% will strengthen the Pound as it will mean there is less chance of an imminent rate cut from the BoE, later we have the same from Europe, where we are expecting inflation to drop to 2.9%- with a rate cut expected in June this will just back the case even more and potentially weaken the Euro further. The next important release for the UK is on Friday with retail sales data out in the morning, the last release was pretty bleak and with improving weather conditions over the last month we could potentially see better spending numbers out of the UK, if inflation comes out higher then we could see a slightly improved retail sales number showing demand is still there.

Leave a Reply

Your email address will not be published.

What's Going On?

Currencies 4 You Ltd is a company registered in England and Wales (registered no. 06866898). Registered office: Regus House Victory Way Admirals Park, Crossway, Dartford, Kent, DA2 6QD. Currencies 4 You Ltd Payment and for clients based in the United Kingdom and rest of the world, payment services for Currencies4you are provided by The Currency Cloud Limited. Registered in England and Wales No. 06323311. Registered Office: Stewardship Building 1st Floor, 12 Steward Street London E1 6FQ. The Currency Cloud Limited is authorised by the Financial Conduct Authority under the Electronic Money Regulations 2011 for the issuing of electronic money (FRN: 900199).For clients based in the European Economic Area, payment services for Currencies4you are provided by CurrencyCloud B.V.. Registered in the Netherlands No. 72186178. Registered Office: Nieuwezijds Voorburgwal 296 - 298, Mindspace Nieuwezijds Office 001 Amsterdam. CurrencyCloud B.V. is authorised by the DNB under the Wet op het financieel toezicht to carry out the business of an electronic-money institution (Relation Number: R142701). For clients based in the United States, payment services for Currencies4you are provided by The Currency Cloud Inc. which operates in partnership with Community Federal Savings Bank (CFSB) to facilitate payments in all 50 states in the US. CFSB is registered with the Federal Deposit Insurance Corporation (FDIC Certificate# 57129). The Currency Cloud Inc is registered with FinCEN and authorised in 39 states to transmit money (MSB Registration Number: 31000206794359). Registered Office: 104 5th Avenue, 20th Floor, New York, NY 10011. Payment Services are provided by Equals Connect Limited, registered in England and Wales (registered no. 07131446). Registered Office: Vintners’ Place, 68 Upper Thames St, London, EC4V 3BJ. Equals Connect Limited are authorised by the Financial Conduct Authority to provide payment services (FRN: 671508). Payment services for Currencies 4 You Ltd are provided by Sciopay Ltd. Sciopay Ltd is a company incorporated in England & Wales. Registration No: 12352935. Sciopay Ltd is licensed and regulated by HMRC as a Money Service Business (MSB). Licence No: XCML00000151326. Sciopay Ltd is authorised by the Financial Conduct Authority as an Authorised Payment Institution. Firm Reference Number: 927951. Currencies 4 you's payment and foreign currency exchange services are provided by Global Currency Exchange Network Ltd T/A GC Partners. Global Currency Exchange Network Ltd is authorised by the FCA under the Payment Services Regulations, 2017 (FRN: 504346). Registered as a Money Services Business, regulated by HM Revenue & Customs ("HMRC") under the Money Laundering Regulations 2017. (Registration number is 12137189). Registered in England and Wales. Company number 04675786. Registered Office 3rd Floor 100 New Bond Street, London, England, W1S 1SP. | Terms and Conditions | Privacy Statement | Careers