Sterling is weaker against both the euro and the dollar following last week’s GDP data. Compared to this time last week, sterling is weaker than both the euro and the dollar.
Tomorrow morning the UK’s unemployment rate for June will be released. Previous data suggests the labour market remains strong amidst increasing costs of living.
In the eurozone, market watchers will be keeping a close eye on Germany as the ZEW Economic sentiment index will be released on Tuesday.
In the US, data on retail sales MoM will be released on Wednesday with consumer spending predicted to fall to 0.2%
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GBP: UK unemployment at a steady rate despite struggling economy.
Today sterling is weaker against both the euro and the dollar following last week’s GDP data.
No UK data is being released today, however economists can expect a variety of interesting data to be released this week. Tomorrow morning the UK’s unemployment rate for June will be released.
Previous data suggests the labour market remains robust amidst increasing costs of living as the unemployment rate has steadily held a rate of 3.8% for 3 months. Tomorrow’s rate is forecast at 3.8%
The claimant count change will also be released tomorrow morning. The number of people claiming unemployment benefits in the UK is on the decline and predicted to stay this way. In May, markets witnessed the rate decline for a 16th consecutive month as the labour market continued to recover from the coronavirus pandemic. It is currently forecast at -10K .
On Wednesday, the latest inflation figures for the UK will be released.
GBP/USD over the past year
EUR: All eyes on Germany this week in anticipation of economic sentiment index figures.
Today the euro has strengthened against sterling but has weakened against the dollar.
In the eurozone this week, market watchers will be keeping a close eye on Germany as the ZEW Economic sentiment index will be released on Tuesday. The figures are currently forecast at -61, suggesting levels of economic optimism in Germany are low. Concerns regarding energy supplies in Germany, as well as the European central Bank’s interest rate hike are some of the reasons for this low optimism.
USD: Consumer spending predicted to fall.
The dollar continues to stronger against sterling but has weakened against the euro.
No US economic data is being released today, however throughout the week markets can expect interesting data releases on building permits and housing starts.
The retail sales MoM data will also be released on Wednesday. Figures are expected to fall to 0.2% after rising to 1% last month.