• The Pound holds well after election
  • China and US close to a trade deal

10 sleeps to go before the big day and three sleeps since that other big day. It was interesting to see that the pre-Christmas and post-election boost in Sterling held up well over the weekend, as the returned Prime Minister went on a charm offensive across the northern areas of the UK that elected a Tory MP for the first time in decades or for the first time ever.  Heaps of new and many first time MPs flooded into London over the weekend to get down to delivering on all those campaign promises (we hope).

The week ahead for the Pound

The Pound has a bid week ahead of it. As well as the new government getting its wheels back on the track, we have a full suite of purchasing manager’s indices (PMIs), earnings and employment data, consumer inflation, GDP growth for Q3 and an interest rate decision from the Bank of England. Oh and Uncle Tom Cobley and all. It’ll be a busy one.

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China and US close to a trade deal

The week started with improved industrial production data from China and that was a surprise. There has been talk of some sort of agreement between China and the US on trade tariffs but some of the terms seem implausible or odd and further clarification is necessary before market movers will get heavily involved in the USD or RMB. The USD has ceded some ground to the Pound and Euro in the interim. As well as the US v China trade negotiations, this week’s US data includes employment, housing and GDP growth. So there is plenty of scope for US Dollar volatility.

Quiet week for Eurozone data

Other than consumer inflation and some business sentiment indices, this is a quiet week for Eurozone data. Hence the Shared currency will have to share its fortunes with others as overseas data drives the markets.

More economic releases ahead

This week will also bring Australian employment data and New Zealand’s GDP growth figures. So there will be overnight volatility in these currencies. Canada will publish retail sales and inflation data to keep things lively for the loonie.

Exaggeration

And if burglars got into your home and stole all your jewellery, what would the insurance claim amount to. That was rhetorical by the way and I really don’t want a figure from you but I suspect very few of us would be putting in a claim for £50 million. That though, is what Tamara Ecclestone will be claiming for after a burglary at her London home over the weekend. It’s amazing the wealth you can amass by being a ….well a …. a daughter of a multi-millionaire.

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