It’s a big week for trading in the UK that could spark significant activity in GBP pairs and the UK 100. The week kicks off with an expected vote on the UK Brexit EU repeal bill, which could be a significant turning point in the Brexit process. In recent weeks, GBP has been gaining at the expense of EUR as the UK has held firm in negotiations.
UK markets may remain active through the week with UK inflation and employment reports leading up to Thursday’s Bank of England meeting. The data may indicate how much pressure (or not) Governor Carney is under to start cutting back on stimulus.
US data this week may also attract attention from traders particularly with the Fed in its pre-meeting blackout period. Last week’s short term government funding and hurricane aid deal between President Trump and the Democrats, plus the pending departure of FOMC Vice Chair Fischer have opened a window for the Fed to make a move in September so this week’s US data, particularly inflation and retail sales reports, could impact trading in USD and US stocks. Announcing the start of balance sheet normalization looks more likely than another rate hike at this point.
It’s a light week for earnings reports, but Apple’s latest iPhone launch event could attract attention to technology stocks. The recovery from Hurricanes Harvey and Irma may influence energy trading through the week.
Economic/Political news (North America time):
Monday evening UK House of Commons vote on Brexit Repeal bill expected
Tuesday UK inflation
United Nations General Assembly starts
Wednesday UK employment
Canada house prices
US producer prices
EU Juncker State of the EU speech
Wednesday evening China retail sales, industrial production
Japan industrial production
Thursday Bank of England meeting no change expected
SNB meeting no change expected
US consumer prices
Canada new house prices
Thursday evening NZ Business PMI
Friday US retail sales, Empire manufacturing, industrial production, consumer sentiment
Earnings Reports and Corporate Events:
Tuesday Apple iPhone 8 launch event
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