Published: 21/08/2023 By ECAPThe Pound has seen a huge rally since the 11th August, jumping up to some of the highest levels we have seen this year. It peaked last Thursday after a string of positive UK economic data releases. This week is quiet on the data front for Sterling, with the exception of manufacturing and services PMI figures released on Wednesday – this could drive volatility into the end of the week, however Sterling could be more influenced by events elsewhere.
The single currency seemed to be the one taking all the punches last week as it dropped against both the Pound and the Dollar. Eurozone GDP figures for the second quarter matched expectations, which propped the single currency up from falling further. This week is a busy one on the data front for the Eurozone, with key PMI figures released by major economies France and Germany, before the ECB’s monetary policy accounts are released on Thursday.
The US has been dominated by news surrounding the on-going fires which seem to have propped up everywhere - and if it’s not fires its floods. Fires still rage on through parts of the US and Death Valley has been hit with huge floods. Focus should shift this week with a number of key data releases as well as Fed members giving speeches ahead of the Jackson Hole Symposium on Thursday – an annual event where central bankers and policy experts meet to discuss the economy.