Financial News from the Foremost Currency Group, 12th March2018
In this week's Report:
GBP/EUR Ticks Higher as UK 2018 Growth Revised Up
Last Week’s High: €1.1339
Last Week’s Low: €1.1242
Pound Bolstered by Spring Statement
It was a quiet session in terms of UK data last week, but despite this the Pound was still able to record some gains against the Euro.
This uptick in Sterling was partly driven by a positive reaction to Chancellor Philip Hammond’s spring statement as UK growth was revised upwards for 2018.
Meanwhile, the Euro suffered last week thanks to further scepticism over whether the European Central Bank (ECB) is moving towards tightening its monetary policy.
This followed a dovish speech by ECB president Mario Draghi in which he suggested that the bank must remain ‘patient’.
Further limiting the appeal of EUR was the release of the Eurozone’s latest CPI figures on Friday, which saw headline inflation fall further than initially forecast in February.
Euro Outlook: Markets to Focus on BoE Rate Decision?
Looking ahead to this week, it’s likely to be significantly more eventful, with a slew of UK data and the EU summit on Brexit having the potential to inspire significant movement in the GBP/EUR exchange rate.
However, possibly the most impactful event on the data calendar this week may be the Bank of England’s (BoE) rate decision on Thursday.
While the BoE is not expected to make any policy changes this month, investors are hopeful that the bank may drop some hints regarding a possible rate hike in May.
In terms of the Euro, movement is likely to be driven by the latest PMI figures, with a further dip in growth possibly supporting suggestions that momentum in the Eurozone in slowing.
09:30 UK Consumer Price Index
10:00 EU Economic Sentiment Index
09:30 UK Unemployment Rate
09:30 UK Wage Growth
12:45 EU ECB Rate Decision
09:00 EU Manufacturing PMI
09:00 EU Services PMI
09:30 UK Retail Sales
12:00 UK BoE Rate Decision
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