- Sterling continued where it left off on Friday and lost value against the euro and US dollar on Monday.
- Despite there being a lack of economic data released yesterday, GBP/EUR fell by just over a quarter of a percent and GBP/USD fell by just over a third of percent.
- GBP/EUR opened 1.1362 and traded as high as 1.1394 before coming off to trade lower eventually closing at 1.1332.
- GBP/USD opened at 1.3379 and traded a high of 1.3431 before closing near the low of the day at 1.3337.
- Last night an influential US-based think tank predicted that nearly all possibly trading relationships between the UK and the EU would be less favourable than staying in the EU. (BBC)
- They stated that the worst case scenario would be a “no deal” and this scenario would leave the UK economy 4.9% poorer by 2029.
- A “soft Brexit” scenario involving staying within the free market would still not be as positive as staying in the EU.
- The report says that Brexit will likely have a “mostly negative effect” on American interests in Europe.
- Sterling is trading lower levels against AUD, NZD and JPY this morning at 1.7648, 1.9213 and 151.32, respectively.
- Australian HPI q/q came in weaker than expected at -0.2% vs 0.6%.
- At 9.30am we have inflation data from the UK – CPI y/y is expected to come in at 3%, PPI Input m/m is expected to come in at 1.6% and RPI y/y is expected to come in at 4.1%.
- Following that we have Eurozone economic sentiment at 10am which is forecast to be 17.9.
- At 1.30pm we expect PPI m/m and core PPI m/m from the US.
- ECB President Draghi is expected to speak at 7pm at the European Cultural Day’s closing concert.
|Currency Pair||Interbank Rate||% Change on Day|
|Time (GMT)||Region||Data Release||Forecast||Previous|
|09:30||GBP||PPI Input m/m||1.6%||1.0%|
|10:00||EUR||German ZEW Economic Sentiment||17.9||18.7|
|13:30||USD||Core PPI m/m||0.2%||0.4%|
|19:00||EUR||President Draghi speaks|