2017 has officially got under way this morning with investors back refreshed after the Christmas and New Year holidays. There are a number of political issues heading our way, most notably the Brexit date in which Theresa May is still looking to trigger Article 50 (end of March 2017) and Donald Trump starting his reign as US President after his win over Hilary Clinton. The Eurozone has its own internal issues to address and the first few data indicators could set the trend early.
German unemployment figures out this morning
German unemployment figures and Consumer Price Index figures are out for viewing this morning, with year-on-year inflation expected to touch 1.4%, its highest number in three years. The figure may boost the Euro slightly however, with the EU extending its Bond Purchasing programme, it is still expected to cause volatile swings for Q1 & Q2.
This afternoon, we view December’s US manufacturing ISM survey, with the figures expected to show that the factory sector grew at its fastest pace in nearly two years. With USD soaring close to a 14-year high, expectations not being met could see GBPUSD move higher.
A quiet week for Sterling means it doesn’t produce key data until Wednesday with Net Consumer Credit and UK Construction PMI for consumption. Expect the main moves regarding Sterling to be off the back of other currency pairings such as EURUSD.