Spectrum Weekly Report

GBP: The British Pound initially strengthened on Friday after the UK’s latest retail sales figure smashed forecasts, printing at 1% rather than the expected 0.4%. However, some profit-taking saw Sterling quickly trim its gains. In addition, worries about the Labour government’s ‘painful’ budget next month seems to have dampened GBP demand. Today, GBP investors will be focused on the latest PMI results.

EUR: The Euro was directionless on Friday as a lack of Eurozone data left the common currency rudderless. However, the safer euro was able to eke out some gains against its riskier rivals as the global market mood soured. The Eurozone PMI surveys are also due out this morning. With private sector activity in the bloc expected to have declined this month, EUR may face selling pressure.

USD: The U.S. Dollar steadied from recent losses after the Fed cut interest rates last week. However, overall losses in the dollar were still limited, given that the Fed signalled that neutral rates will also be much higher than seen in the past. More cues from the central bank are due this week, with a slew of Fed officials set to speak in the coming days.

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