Market News
Recent financial market developments – spikes in major bond market yields and volatile risk sentiment – have been driven by concerns around potential ECB tapering, falling support for Donald Trump, and less strong Chinese trade data.
Last week, GBPUSD was under pressure all week from talks regarding a possible ‘hard Brexit’, along with Scotlands’ continued push for possible independance. Cable fell to a low of 1.2090 and EURGBP hit highs of 0.9142 (source:Bloomberg), prior to UK PM announcing that she would involve Parliament in the Brexit debate.
What to watch today
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A quiet start to the week: this morning we look to the euro area at 10.00 for September Final HICP data (Barclays Research: 0.4% m/m, Consensus: 0.4% m/m). This afternoon, at 14.15, the market will watch for the US IP release (Barclays Research: 0.2% m/m, Consensus: 0.2% m/m). Speaking today, we hear from Fed voter and Vice Chairman Fischer at 17.15 In the week ahead, on Tuesday we look to UK and US September CPI data, Wednesday is the Fed beige book release and UK employment report, with the third US presidential election debate taking place in the evening. The EU Summit will take place in Brussels on Thursday and we also look to the ECB meeting on Thursday for any guidance on the direction of future policy |
Currency rates currently sit at 1.2158 for GBPUSD and 1.1079 for GBPEUR.
via Barclays Capital
