Sterling remains resilient
- EUR German Ifo Business Climate: 106.6
- USD New Home Sales: 511K
Sterling continues to remain resilient despite the upcoming Brexit referendum, however this week the US and the Federal Reserve statements scheduled are scheduled for Wednesday. The Fed are unlikely to encourage a firmer currency at this time and therefore continue their dovish tone. The current uncertainty of the Dollar is evident this week as GBP/USD continues to push higher.
Yesterday’s economic docket was relatively light. Early in the morning German Ifo Business climate was released, posting a worse than expected 106.6 this is measured by firms in manufacturing, construction, retailing industry. Germany view the current market conditions as poor this month. In the afternoon, the US gave markets an insight into the housing sector as New Home Sales were released. New Home Sales failed to meet economists’ consensus, registering a 511k.
- USD Core Durable Goods Orders m/m
- USD Durable Goods Orders m/m
- USD CB Consumer Confidence
- GBP MPC Member Cunliffe Speaks
- NZD Trade Balance
- AUD CPI q/q
- AUD Trimmed Mean CPI q/q
US data will dominate the markets as we gain more insight into the Consumer Confidence reading. First to hit the wires will be the monthly figure for Durable Goods orders which is forecast to improve from the previous -3.0% to a positive 1.9%, The Core Durable Goods figure which excludes transportation items is also forecast to improve to 0.6%. Following this, the CB Consumer Confidence is set to show consumer spending to remain unchanged from the last 96.2 reading, which could prove Dollar positive. The US Flash services PMI will also be posted just after lunch.