Sterling fights back

• JPY BOJ Gov Kuroda Speaks
• USD Treasury Sec Lew Speaks
• USD FOMC Member Dudley Speaks
• USD Fed Announcement
• AUD NAB Business Confidence: 6

The markets’ negative tone continued this week as we saw Sterling and also the single currency weaken in the early European session. Of course for the UK, Brexit concerns are heavily weighing on the Pound, sending it down substantially against the majority of its counterparts. The ECB’s Vice President, Constancio said that the ECB would “do whatever it takes” to achieve price stability. Yesterday, the ECB published the account of their policy meeting, where further measures were introduced. Shortly after, the ECB President Mario Draghi addressed the markets in Lisbon. The tone of the ECB was much of the same. Draghi appealed to political leaders for help in improving the economy and monetary union as the central bank cannot stimulate growth single-handedly. 

The economic docket was busy yesterday. Firstly, the UK released their Halifax house price index, forecast at 0.8%. The reading posted a bullish 2.6%, rebounding from last month’s decline. In the afternoon, the US posted their weekly jobless claims figure. Unemployment claims exceeded expectations, registering at 267K as the labour market in the US continues to improve. 

• GBP CPI y/y
  
• GBP PPI Input m/m
• GBP RPI y/y
• USD Import Prices m/m
• CNY Trade Balance

The main focus of Friday will be on the UK, with the monthly Manufacturing Production figure expected to be bearish at -0.01% and Industrial Production also expected to fall. Goods Trade Balance is expected to narrow slightly to -10.1B for the UK, but no doubt there will be some volatility for the Pound around these being released.