Market Report 15th - 17th August
Good morning everyone,
At the start of the week the GBP/EUR exchange rate has seen some unexpected relief which has come thanks to the escalating Turkish financial crisis. There are now concerns that Euro-zone banks could come under pressure in the event of a Turkish banking crisis. The news which was reported by the financial times allowed the GBP/EUR exchange rate to recover from monthly lows of €1.1076 to back above €1.12. As long as the Turkish crisis remains we'll most likely see GBP/EUR remain supported, at least until we get more headlines from Brexit negotiations which begin again tomorrow.
Considering where Brexit negotiations left off, (Hard Brexit looking slightly more likely) anyone with immediate GBP/EUR exchange's should strongly be considering making part or all of what they'll need to exchange before negotiations fully get back underway.
Yesterday’s UK labour market data was mixed and ended up reaping more weakness on the GBP/USD exchange rate but today’s UK inflation figures had limited market impact but did show Inflation rising and thus is lending some support to all Sterling exchange rates.
In the US, the first glimpse of consumer spending in Q3 will come from the July retail sales report. Many are looking for sales growth to reach 0.3% from 0.5% in June, partly weighed by car sales and fuel.