Beyond the stats, ECB member commentary also requires consideration. Views on inflation, the economic outlook, and the timing of rate cuts will impact demand for the EUR.
The Pound
On Monday, the finalized UK services PMI will influence buyer demand for the Pound. Downward revisions to the Flash PMI could fuel speculation about a Q4 2024 Bank of England rate cut, accounting for over 70% of the UK economy. Additionally, investors should consider the employment and price sub-components, considering the sector’s significant contribution to inflation.
Weaker labor market conditions could dampen wage growth and consumer spending, impacting demand-driven inflation.
The BRC Retail Sale Monitor will be in focus on Tuesday. Another decline could fuel speculation about a UK recession. Private consumption contributes over 60% to the UK economy.
The Loonie
Canadian…
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