The Fed’s monetary policy update is on Wednesday

GBP

Sterling fell against both the euro and dollar on Friday as UK Retail Sales for December missed market expectations.

Data released by the Office for National Statistics (ONS) showed the month on month Retail Sales figure had contracted by 3.7% compared to expectations of a 0.6% contraction. According to a spokesman for the ONS, the reintroduction of Plan B Covid measures kept many at home which weighed on December’s retail sales figures.

Sterling was also pressured following calls for current British Prime Minister Boris Johnson to resign.

This week sterling will be largely driven by risk sentiment.

USD

For the dollar, the Federal Reserve will meet on Wednesday to update the market on its current monetary policy stance.

Key announcements

9:00 – EUR – Markit Manufacturing PMI – expected 57.5 – actual 59
9:00 – EUR – Markit PMI Composite – expected 52.6 – actual 52.4
9:00 – EUR – Markit Services PMI – expected 52.2 – actual 51.2
9:30 – GBP – Markit Manufacturing PMI – expected 57.9
9:30 – GBP – Markit Services PMI – expected 55
14:45 – USD – Markit Manufacturing PMI – expected 57.9
14:45 – USD – Markit PMI Composite – expected 56.9
14:45 – USD – Markit Services PMI – expected 55