GBP starts week on back foot
Last week we saw mixed moods on markets with trading conditions choppy at times. Monetary policy was firmly in focus during the first half of the week, while a number of international summits regarding the War in Ukraine were in the spotlight in the later half of the week.
Despite the busy summit and policy diary last week, the main pairs operated in relatively narrow trading ranges. EUR/USD straddled the $1.10 threshold for much of the week, GBP/USD hung just shy of $1.32 and EUR/GBP continued to operate in the 83-84p band. As we get going this morning, EUR/USD opens back at the midpoint of $1.09-1.10 while GBP/USD has slumped to the bottom half of $1.31-1.32. EUR/GBP remains in the lower half of 83-84p.
As we look to the week ahead, there is a busy data schedule in the US, with the latest labour market data (including non-farm payrolls) for March being the main highlight. Core-PCE inflation, consumption and income data will also garner some attention. Meanwhile in the Eurozone a mixture of labour market and inflation data will feature, including flash HICP for March. Sentiment though, is likely to remain sensitive to Ukraine related newsflow, as it has been throughout the month. Expect traders to keep their pencils sharpened for payrolls printing on friday.