Sterling falls amid rate cut speculation

Last Week
GBP

  • Fears of an escalation in the US – Iran conflict were low.
  • Ursula von der Leyen: ‘trade deal by the end of 2020 is virtually impossible’.
  • Timetable to agree a deal labelled ‘short and extremely challenging’.
  • If a deal isn’t agreed, UK would revert to WTO terms.
  • BOE Policymakers signalled that they are leaning towards a rate cut.
  • 60% chance of a 25 basis point cut.

Economic data for this week
GBP

  • Mon - Manufacturing and industrial production.
  • Wed – Inflation.
  • Fri – Retail sales.

USD

  • Tue - Inflation data Tuesday.
  • Thu – Retail sales.
  • Fri - Michigan Consumer Sentiment Index.

EUR

  • Thu - ECB President Lagarde speaking.
  • Fri - Inflation data.