Sterling gained some headway at the end of the week with surprising economic data out of the UK, with the figures showing a good start to the year it could suggest that speculations of recession fears may have eased, temporarily at least.
With Bank of England’s Andrew Bailey speaking on Wednesday, on how the UK’s economy is looking currently and how financial stable it is, will it be backed up by the releases last week or will Bailey signal something different. Ears will be very much firmly on the speech so volatility remains.
Both the US and Europe have their interest rate decisions this week with suggestions that the ECB will cut by 25 basis points and will continue to do so for the first part of the year. The Eurozone has continued to have a mixed bag of data readings out with nothing significant supporting stability.
However with an inflation print due out on Friday, this will be essential in how the European Central Banks make their next move, as Lagarde has always reenforced decisions are made on a data by data basis.
With Trump making a firm impact in the US already, the FED will be sure to take into consideration the tariff suggestions along with new measures that are currently taking affect. The outlook for the US economy from the FED and Jerome Powell will more than likely cause some market movement on the Dollar.
-Oakleigh Exchange Partners-