Daily FX European Weekly Wrap
27 January 2017: It’s been a week of mainly positive sentiments with Britain posting a better than expected GDP reading, boosting optimism that Brexit woes are not damaging the UK economy, although it’s early days and a weakening pound could potentially push up prices as the year progresses. However, as Daily FX analyst Nick Cawley acknowledges Sterling has had a better week on the back of this reading as well as the news parliament will now vote on whether or when Article 50 will be ignited.
The European markets have been keeping one eye firmly placed on the other side of the pond as to what the newly elected President is planning or indeed tweeting. Mr Trump is hosting British Prime Minister Theresa May this Friday and every trader will be wanting to be a fly on the wall as to what potential trade deals are being planning between the two G7 countries.
Looking ahead to next week, it’s a busy one! There’s ‘Super Thursday’ which means the Bank of England will meet to announce its latest policy measures – all expected to be unchanged - and will provide markets with its updated GDP and inflation forecasts. Sterling will be the trade to watch on the back of this one. Then there’s international news which will likely impact the markets in London and on the continent which includes the FOMC meeting, non-farm payrolls, ECB and Bank of Japan central bank decision as well as China’s PMI reading.
It’s also a busy week for earnings with Apple, Deutsche Bank, Facebook and Vodafone.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.