Politics back in focus with a bumpy start to 2019

Pound - GBP 

Brexit vote back in the spotlight

It’s a short working week following the Christmas and New Year holidays, but there are still some economic events lined up which could impact the currency market. On Wednesday, the latest UK manufacturing data will be released, followed by construction figures on Thursday. Friday will close the week with an insight into UK mortgage numbers and the health of the service sector. Additionally, Brexit is likely to be back in the headlines with politicians returning from their Christmas breaks and the upcoming vote on the Brexit proposals due to be held in the week commencing January 14th.

Euro - EUR

Eurozone inflation ahead

Although there are a few pieces of data out on Wednesday and Thursday, such as German Retail Sales numbers, the main events will take place on Friday. German labour market data will come to light, detailing levels of unemployment in the Eurozone’s largest economy. Additionally, the Eurozone inflation readings for December will make their way onto the market, which could create some significant Euro exchange rate movement. 

US Dollar - USD 

US government in partial shutdown

Eyes will be on US President Donald Trump and the US government this week as Democrats take control of the House of Representatives on Thursday. The US government has been experiencing a partial shutdown for almost two weeks after Trump and the Democrats began a standoff over $5.7B of funding for the US President’s famous Mexican border wall proposal. In terms of economic data, the US Change in Non-Farm Payrolls figure will print on Friday, and likely be highly influential for the US Dollar exchange rate. Federal Reserve Chair Jerome Powell will also speak on Friday which could provide another reason for USD movement. 

AUD, NZD, CAD

Currencies vulnerable to risk appetite amid light data week

It’s a quiet week for Australian data overall, but Monday’s releases showed a dip in Private Sector Credit from 4.6% to 4.4% on the year in November. Investors in the Aussie will be keeping an eye on global events, as well as Thursday’s final December service sector figure. New Zealand data is thin on the ground this week too, leaving the Kiwi susceptible to risk appetite and other geopolitical events. Meanwhile, the Canadian Dollar might experience some movement on Wednesday’s manufacturing reading, as well as Friday’s highly influential employment numbers.