Sterling remains relatively elevated despite recent US Dollar strength. This week may make life a bit tougher for Sterling bulls
Forecasts
Gold is likely to struggle to push higher over the coming week after the latest US Jobs Report smashed expectations, paring Fed rate cut expectations.
Euro pessimism drags on as the EU narrowly avoided a recession. ‘US excellence’ is very much alive after NFP, while the pound and yen could aid euro performance
Sterling has benefited from the Bank of England’s clear lack of urgency to move borrowing costs either way. In a data-light week that support will probably stick
The US dollar has benefitted from cooling Fed cut expectations and robust economic data. The greenback’s rise appears likely to continue in a data heavy week
After a neutral ECB meeting on Thursday, next week sees some heavyweight EU economic data hit the screens including GDP, Inflation, and Jobs.
The Pound and the Dollar will both look to their respective central banks this week. Market rate pricing probably poses the biggest risk.