The Pound has clawed back some of the losses seen at the back end of last week against the Euro following flash PMI coming out better than markets expected, although that doesn’t allow the Pound any breathing space.
Some Analysts and Economists have forewarned that Rachel Reeves’ budget could continue to damage the UK, with a main factor being the raise in tax on employer salaries could lead to rising unemployment. We have seen employment fall this month at the fastest rate not seen since the financial crisis of 2009.
The Bank of England are due to announce their interest rate decision later this week and have relied heavily on data to support their position, with a mixed bag of data out of the UK and the fall in the economy for the second consecutive month, could this have more of an impact than first thought?
Over in the US, the Federal Reserve are due to also deliver their latest interest rate decision, with markets expecting a cut despite the subpar data seen last week. Following the announcement, markets will have all eyes on the statement delivered to obtain any form of idea in what the next move may be heading into the New Year.
Key events this week:
Wednesday
US➡️ – Federal Reserve Interest Rate Decision
UK➡️– CPI year on year
Thursday
UK➡️– Bank of England Interest Rate Decision