Ahead of England’s crunch semi final against Croatia, what could impact sterling today?

As the country firmly slips back into football mode ahead of the much anticipated world cup semi final against Croatia, for those that are interested, I will look at what could impact the pound for the rest of the week. With much of the England gripped by football fever and the prospect of football “coming home” the pound has settled following the busy start to the week.

As the market still digests the political instability caused by the resignation of key Brexit figures David Davis and Boris Johnson, it would appear the chances of Theresa May’s leadership coming under threat is waning. Many of her cabinet have publicly backed her leading to a degree of calm for the pound (for now).

What could impact the pound for the rest of the week?

Looking away from the Brexit debacle I have outlined below the data that could impact Sterling, Euro and the US dollar exchange rates for the rest of the week.

  • Wednesday 13:30 US Producer Price Index data. This is a key inflation barometer for the US and generally a higher reading is better for the dollar. Figures expected to fall from 0.5% to 0.2% month on month.
  • Wednesday 16:35 Bank of England Governor Mark Carney is due to speak. Nothing expected from his speech but worth watching for any clues as to future monetary policy for the UK.
  • Thursday 10:00 Eurozone Industrial Production data. A sharp increase expected month on months from -0.9% to 1.2% so could lead to Euro strength.
  • Thursday 13:30 US initial jobless claims and Consumer Price Index (CPI) figures. Figures expected to remain flat so no market movement anticipated following this release.
  • Friday 12:00 Monetary Policy Committee (MPC) member Sir Jon Cunliffe is speaking.
  • Friday 16:00 US Fed Monetary Policy report.

As you can see there is still plenty of data for the rest of the week. The pounds short term movements are still set to be dominated by “Brexit” but it is still important to keep up to date with economic data.

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