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Mr Broadbent, we’re all looking at you

Mr Broadbent, we’re all looking at you

Sterling continued to ebb against its peers due to a lack of data or news and an underlying lack of confidence in the economic outlook after last week’s poor data. The Pound dipped to lows near 1.2850 against the Dollar before finding support as the Euro tested resistance above 1.1300 in narrow ranges.

The British Retail Consortium revealed like-for-like sales growth of 1.2% in the year to June whereas the forecast was 0.5% growth, but the latest Barclays data registered a slowdown in annual spending growth to a 15-month low of 2.5%.

Bank of England Monetary Policy Committee (MPC) member Broadbent is due to speak today and, as a centrist, his policy stance will be key. Will he join the hawks?


US labor market conditions rose 1.3 for June, the 13th successive monthly increase, and May’s figure was revised to an increase of 3.3. Overall, trading conditions were notably subdued during the day, which is often the case on the Monday following a US employment report amid a lack of fresh fundamental incentives.

The Dollar made some positive progress against major currencies, notably the Euro. Wednesday’s congressional testimony from Fed Chair Janet Yellen may maintain the calm in the lead-up. Yellen has very little reason to deviate from her hawkish guidance after Friday’s nonfarm payrolls report.


The adjusted May German trade surplus matched expectations at EUR20.3bn with an annual increase in exports of 14.1% helping to boost confidence in the outlook. The Eurozone Sentix investor confidence index was little changed at 28.3 for July, maintaining optimism surrounding the underlying outlook.

The markets will remain sensitive to Central Bank policy rhetoric given the effect on bond yields and the resulting currency impact.

Data To Watch:
4:30pm USD FOMC Member Brainard Speech 
5:20pm FOMC Member Kashkari Speech

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