Weekly Market Report
This week it was confirmed the fourth quarter UK domestic product dipped 0.4% as the Pound dropped off slightly this week. Markets were also discouraged by weaker than expected mortgage approval figures; indicating a slowing down in the UK housing market. With little data out this week markets will be on the lookout for more Brexit breakthroughs with any negative news being magnified off the back off the weak data from last week. Now could be a good time to sell any excess Sterling you may be holding.
In an unusual move for Donald Trump last week he took to Twitter to criticise the US’s biggest retailer Amazon for paying little to no tax and said they are a burden on the US postal system. This worried the markets as Amazon stock fell 5% and investors became worried on where to put their money as it may have bigger connotations throughout the market. Looking ahead the main data released this week is the non-farm payrolls out on Friday. This may be weaker than expected due to the FED looking to hike interest rates a further 2 times this year instead of an expected 3 so we could see a dip in the USD rate.
German consumer price index fell below expectations last week however inflation grew from 1.4% to 1.6% which negated most of the negative impact. This week sees the Eurozone Consumer Price Index released on Wednesday with rises expected. This could boost the economical outlook for the Eurozone so it could be a good time to buy any EURs you require.
Tuesday: AUD RBA interest rate decision and statement.
Wednesday: EUR consumer price index
Thursday: EUR ECB monetary policy meeting accounts
Friday: USD Nonfarm payrolls
USD Average hourly earnings (YoY)
CAD Net change in employment