GBP Awaits GDP Data, Lagarde & Powell in Focus

Currency Pairs – Mid-Market Rates

Interest Rates & Inflation

GBP

• Tuesday – Bank of England Governor Andrew Bailey speaks at the University of Chicago Booth School of Business in London. His speech will focus on whether financial markets are underestimating key economic changes.
• Thursday – Gross Domestic Product (GDP): The UK’s GDP, currently at 0.9%, is a key measure of economic activity. A reading above 0.9% would likely strengthen GBP, while a weaker figure could lead to GBP depreciation.

EUR

• Monday – ECB President Christine Lagarde speaks on the current and future outlook of the Eurozone economy. A hawkish stance may support the Euro, while a dovish tone could weigh on the currency.
• Friday – Gross Domestic Product (GDP): The Eurozone GDP is expected to hold at 0.9%. Any upside surprise could strengthen the Euro, while a lower reading could weaken it.

USD

• Tuesday – Federal Reserve Chair Jerome Powell testifies before Congress, offering an overview of the economy and monetary policy. His prepared remarks will be published in advance.
• Wednesday – Consumer Price Index (CPI): The primary inflation gauge in the US is currently at 2.9% and expected to remain unchanged. Given past inflation spikes, any unexpected increase could impact markets significantly.
• Thursday – Producer Price Index (PPI): Measures changes in wholesale prices and is a key indicator of inflation trends. Currently at 3.3%, with no consensus on expectations. A high reading would be bullish for the USD, while a lower figure could weigh on the currency.
• Friday – Retail Sales (MoM): This key consumer spending indicator is expected to drop from 0.4% to 0%, which could weaken the USD.

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