The British currency was the top performer of the week. There was a lively week for the pound, which began with a public row between London and Brussels.
It was the second week of gains for the pound against the greenback. The sterling gained 2.89%. It was also the first weekly rise against the euro in three weeks.
The dollar maintained a mixed report over the week. It rose against the safe haven currencies, but it was weaker against other currencies. The Canadian dollar rose 0.9% supported by higher oil prices.
The euro rose 0.57% on the week. This was followed by the Australian dollar which also managed to gain 0.56% on the week. The New Zealand dollar rose 0.63% on the week and maintained gains from the previous week.
Gold closed last week with losses. It was not the top performer among the metals.
U.S. consumer prices were unchanged in September. The data supported expectations the Federal Reserve will cut interest rates in October for the third time this year. The CPI edged up 0.1% in August. In the 12 months through September, the CPI increased 1.7% after advancing by the same margin in August.
The FOMC released its meeting minutes last week. Participants at the meeting expressed concerns that investors were expecting more rate cuts. Further, the CME Group’s Fed watch tool indicates that markets expect another rate cut in December.
START TRADINGLQDFXperts – The week ahead
- On Monday (14.10) the Reserve Bank of Australia will release the Minutes of the monetary policy meetings of the Reserve Bank Board.
- On Tuesday (15.10) the Governor of the Bank of England Mark Carney will testify before the Treasury Select Committee on the Financial Stability Report. Sometimes, the markets have turned volatile during his speeches. Traders try to decipher his clues for future interest rates.
- On Wednesday (16.10) New Zealand, UK and Canada will release their Consumer Prices Indexes. Forecast for September 2019 is 0.3% decline for Canada CPI, 1.8% increase for UK CPI and 0.6% increase for New Zealand CPI. The US Census Bureau US will release the monthly Retail Sales data measuring the total receipts of retail stores. Retail Sales and Core Retail Sales are expected to increase by 0.3% and 0.2%.
- On Thursday (17.10) Australia Employment Change and Unemployment Rate will be released. For September 2019 the forecast for Australia is add 15,300 jobs. Analysts expect unemployment to remain at 5.3%. The United Kingdom will release its Retail Sales data which is expected to decline by 0.1% for September. In the United States, the Philadelphia Fed Manufacturing index will be released with forecast for October to be 7.3. Also, analysts expect a decline of 0.257 million barrels in the US Crude Oil Inventories for the week.
- On Friday (18.10) China’s GDP which grew 6.2% on a year-on-year basis in the June quarter of this year. Ongoing trade tensions weigh on the forecast for September quarter may probably grow by 6.1%.
Follow this week’s economic calendar.
PLEASE NOTE The information above is not investment advice.
Sources: Reuters, CNBC, FX street