WEEKLY MARKET REPORT 18/05/2020
Updated: Aug 25, 2020
Sterling has fallen more than 2% against the Euro. The fall was initiated by comments from the Bank of England (BoE) about future monetary policy as investors began pricing in further quantitative easing for June’s BoE meeting.
Sterling’s woes were further escalated as gloomy economic data showed a sharp fall in GDP for March, but with the UK not invoking lockdown until 23 March, the worse is yet to come. Markets had hoped for a “v-shaped” recovery but this prospect is now dwindling as economists predict it could be 2022 before the UK economy returns to pre Covid-19 levels.
The US dollar lost momentum against most major currencies due to the US economy tanking as Covid-19 cases continue to rise.
The Fed's Chair Powell speech on Tuesday will provide an overview of the economy and monetary policy.
Europe looks to return to normal life as last week the continent initiated the relaxation of strict lockdown measures and began attempting to live with the Covid-19 disease. Eurozone GDP crashed 3.8 percent, with Germany falling 2.2 percent in the first quarter of the year although like the UK, economists expect a significantly bigger drop over the coming months.
DATA THIS WEEK
- GBP - Unemployment Rate
- GBP - Claimant Count
- USD - Fed's Chair Powell's speech.
- GBP - Consumer Price Index
- EUR - Consumer Price Index
- USD - The Federal Open Market Committee Minutes
- GBP - Markit Services
- EUR - Markit Services and Marketing
- USD - Job Loss Claims
- USD - Fed's Chair Powell Speech
- EUR - ECB Monetary Policy Meeting
- EUR - ECB's Lane Speech