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Data from both the US and China disappointed last week, and subsequent pressure on the US Dollar all but confirmed that investors’ attention is fixed there rather than on emerging markets. It’s all about monetary policy and, while markets tend to bet on stimulus and other sorts of meddling from the People’s Bank of China when there’s nothing else interesting going on, right now there’s plenty to keep us occupied!
A resurgence in the EUR/USD through last week was fuelled by a reversal in US data that points to waning economic confidence. The GBP continues to weaken against the Euro with more stimulus expected from the BoE in due course, while the ECB works out what it will do next. The GBP/USD pair remains under pressure too, although has managed a little bounce this morning following Friday’s poor US and Chinese data performance.
Key data this week (Sign up here to get our daily live macro-calendar)
Intl Economic Announcements
07:00 Wholesale Price Index (GER)
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UK Economic Announcements
09:30 Consumer Price Index, Producer Price Index, Retail Price Index
Intl Economic Announcements
10:00 Balance of Trade (GER), ZEW Surveys (EU, GER)
13:30 Building Permits, Consumer Price Index, Housing Starts (US)
14:15 Capacity Utilisation, Industrial Production (US)
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UK Economic Announcements
09:30 Claimant Count Rate
Intl Economic Announcements
15:30 Crude Oil Inventories (US)
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UK Economic Announcements
09:30 Retail Sales
Int. Economic Announcements
09:00 Current Account (EU)
10:00 Consumer Price Index (EU)
13:30 Initial Jobless Claims, Continuing Claims, Philadelphia Fed Index (US)
15:30 Leading Indicators (US)
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UK Economic Announcements
09:30 Public Sector Net Borrowing
Technicals
Technicals
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