UK Markets – Central Banks, NFPs and Brexit:
- Interest rate decisions from the European Central Bank, the Reserve Bank of Australia and the Bank of Canada.
- Add into the mix, US NFPs and ongoing Brexit negotiations.
Sterling (GBP) – A Potentially Testing Week Ahead
A raft of high-profile central bank rate decisions and releases will keep Sterling traders on their toes in the coming week. While no rate changes are expected, there is a possibility that one or all the central banks – ECB, BoC and RBA – may well give the market a dovish surprise. In addition, the latest monthly US Labour Report is released on Friday and may well add credibility to the currently strong US dollar.
Brexit discussions continue, and the next two weeks are crucial and will decide Sterling’s fortune in the coming months. Talk continues to suggest that a last-minute settlement will be reached, either by March 29 or at the end of a two-to-three month extension of the Withdrawal Agreement.
Sterling remains resilient against a range of currencies, although this bullishness may well be tested this week. EURGBP remains under 0.8620 as we write while GBPUSD trades either side of 1.3200.
GBPUSD Daily Price Chart (June 2018– March 4 , 2019)
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--- Written by Nick Cawley, Analyst
To contact Nick, email him at email@example.com
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