{"id":8561,"date":"2021-08-16T10:56:47","date_gmt":"2021-08-16T10:56:47","guid":{"rendered":"https:\/\/lanjaronproperty.com\/?p=8561"},"modified":"2021-08-16T10:56:55","modified_gmt":"2021-08-16T10:56:55","slug":"currency-exchange-news-16th-august-2021","status":"publish","type":"post","link":"https:\/\/lanjaronproperty.com\/currency-exchange-news-16th-august-2021\/","title":{"rendered":"Currency exchange news 16th August 2021"},"content":{"rendered":"
The week ahead is another quiet week for macroeconomic data from the Eurozone. Still, this information gap will be adequately filled by a full week of statistics from the UK and some interesting releases from the US. With the markets firmly in the summer doldrums, currencies can reasonably be expected to stay within their current ranges unless an unexpected event upsets the calm. However, with the Delta variant of Covid causing more problems in the US, a shock from that direction cannot be totally discounted, and it may already be affecting growth prospects if Friday’s unexpectedly sharp fall in US Consumer Confidence is anything to go by. Finally, we will be monitoring risk sentiment closely after the weekend’s events in Afghanistan and any regional repercussions from them.<\/p>\n
For the latest currency exchange rates click here:<\/p>\n
UK<\/u><\/span><\/span><\/span><\/strong> Eurozone<\/u><\/span><\/span><\/span><\/strong>
\nAs previously mentioned, sterling had a good week, especially against the euro. The data flow gets underway tomorrow with the release of the Unemployment rate for July, which is expected to show a modest fall. However, it must be remembered that the ongoing job support schemes still distort it. On Wednesday, the July Consumer Price Index (CPI) is released, a figure that is likely to be slightly unreliable due to the distortion to prices caused by last year’s reopenings in the same month. It will come as no surprise if a lower rate is recorded and probably ignored by the markets. Finally, on Friday, July’s Retail Sales and the Gfk Consumer Confidence readings will be released. Hopefully, after this tumult of information, we should have a much clearer picture of how the economy is recovering, which will set the short-term direction of sterling. \u00a0Apart from the macroeconomic information, the other influences on sterling’s path will be the speed of the spread of Covid and disputes over the Brexit treaty, which still appear to be rumbling in the background.<\/span><\/span><\/span><\/p>\n
\nA relatively quiet week of data for the Eurozone is in prospect. Still, the reports that are released should make for interesting reading but are unlikely to lend the euro too much strength against either sterling or the Dollar. First off the printing press is the first revision for Second Quarter GDP tomorrow morning with a consensus forecast of around 2.00%. Next up on Wednesday is the Consumer Price Index, which analysts expect to show a relatively subdued reading of 2.2% compared to its main trading partners. Finally, with the German election looming in September and a tight race to replace Angela Merkel developing, the market is starting to watch opinion polls more attentively, and they may come to influence the euro’s direction<\/span><\/span><\/span>
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