The EUR/GBP closed the week at 0.8467 with a gain of 0.88% on the week as the euro rallied after the lack of action by the ECB. The central bank did not
The EUR/GBP closed the week at 0.8467 with a gain of 0.88% on the week as the euro rallied after the lack of action by the ECB. The central bank did not offer up any additional stimulus giving the euro a bounce. Friday’s reversal of the US dollar weighed on the pair while the pound also traded on a strong note on additional positive economic data and Prime Minister May’s outlook for the Brexit negotiations. The pair is a strong buy into the new week as traders look forward to the Bank of England’s Super Thursday rate meeting.
Analysts said the shrinking trade gap bolstered hopes that external trade would make a positive contribution to overall growth in the third quarter and added to evidence of the economy’s resilience.
Investors are reconsidering price levels of assets now that there’s less help on the way from various central banks, Blais said. The European Central Bank, for example, said yesterday it would not extend the duration of its bond-buying stimulus program, surprising the markets.
The sectors that have most benefited from easy monetary policy, like telecoms, utilities, materials and energy, have been hit the most, Blais said.
“It’s not a surprise to see those names at the bottom end of the performance or those names selling off the most.”
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This Week’s Economic Events That You Should Be Monitoring:
Date | Country | Name | Volatility | Previous | Consensus |
9/13/2016 | GBP | Core Consumer Price Index | 3 | 1.3 | 1.4 |
9/13/2016 | GBP | Consumer Price Index (YoY) | 3 | 0.6 | 0.7 |
9/13/2016 | EUR | ECB President Draghi’s Speech | 3 | ||
9/13/2016 | EUR | ZEW Survey – Economic | 3 | 4.6 | 6.7 |
9/14/2016 | NZD | Gross Domestic Product (YoY) | 3 | 2.8 | |
9/15/2016 | AUD | Employment Change | 3 | 26.2 | 15 |
9/15/2016 | AUD | Unemployment Rate | 3 | 5.7 | 5.7 |
9/15/2016 | CHF | SNB Interest Rate Decision | 3 | -0.75 | -0.75 |
9/15/2016 | CHF | SNB press conference | 3 | ||
9/15/2016 | GBP | BoE Asset Purchase Facility | 3 | 435 | 435 |
9/15/2016 | GBP | BoE Interest Rate Decision | 3 | 0.25 | 0.25 |
9/15/2016 | GBP | Monetary Policy Summary | 3 | ||
9/15/2016 | GBP | BOE MPC Vote Cut | 3 | 9 | 0 |
9/15/2016 | GBP | BOE MPC Vote Unchanged | 3 | 0 | 9 |
9/15/2016 | GBP | BOE MPC Vote Hike | 3 | 0 | 0 |
9/15/2016 | GBP | Bank of England Minutes | 3 | ||
9/15/2016 | USD | Retail Sales (MoM) | 3 | 0 | 0 |
9/16/2016 | USD | Consumer Price Index (YoY) | 3 | 0.8 | 1 |
9/16/2016 | USD | Consumer Price Index ECORE | 3 | 2.2 | 2.2 |
9/16/2016 | USD | Michigan Consumer Sentiment | 3 | 89.8 | 91 |
Government Bond Auctions
Date Time Country Auction
Sep 12 11:30 Germany Eur 2bn Mar 2017 Bubill
Sep 12 13:00 Norway Details of bond auction on Sep 14
Sep 13 11:00 Netherlands Eur 2-3bn 0% Jan 2022 DSL
Sep 13 11:10 Italy Holds bond auction
Sep 14 11:05 Norway Holds bond auction
Sep 14 11:30 UK 0.125% 2046 I/L Gilt
Sep 14 11:30 Germany Eur 1bn 2.5% Jul 2044 Bund
Sep 15 10:30 Spain Holds bond auction
Sep 15 11:03 Sweden Holds I/L bond auction
Sep 15 11:50 France Holds bond auction