A Quiet start to the week with key data released later into the week. MPC minutes for the UK Will be a big market focus.
The weakness of the upturn in the US housing market remains an area of concern that has been highlighted by Fed Chair Janet Yellen on a number of occasions.
Monetary policy is likely to be a focus of attention this week in both the UK and the US. The minutes of the last MPC and FOMC meetings will be released and will be scrutinised for signs of growing divergence in views. The Fed will also hold its Jackson Hole Symposium, with Fed Chair Yellen’s speech on Friday a particular focus for markets.
GBP
Key data for the rest of the week in the UK include retail sales and CPI inflation. Markets expect the former to show buoyant sales in July and the latter subdued inflation.
It is a quiet start to the week with the euro area trade balance (June) and the US NAHB survey (August), the only data of note. Forex traders still buying euros as a whole continues to have a sizeable trade surplus, in part boosted by weak imports due to the lack of domestic demand. June is likely to have seen another sizeable surplus.