Plenty to report this week

World Markets

The Bank of England has warned that inflation could hit 13% by the end of the year. In addition to the political vacuum and roaring energy prices, parts of the UK are now suffering drought-inducing heat waves. With UK Employment & Inflation numbers being released Tuesday & Wednesday, further harmful economic data could cause GBP to experience an increase in volatility mid-week. If the UK sees both unemployment & inflation numbers up, we will see a weakening of the GBP against the Dollar and Euro.

The Euro Zone is expected to release similar economic data on Wednesday increasing the chances of volatility across the market mid-week. Employment Change & Gross Domestic Product for Q2 will give us an insight into the European Union’s current economic state. The GDP figures set to be announced will impact the value of the Euro significantly, depending on the positive or negative nature of the data. The GDP is considered as a broad measure of Euro Zone economic activity, and a rising trend will have a positive effect on the currency.

The Dollar is expected to see a slow start to the week, as it tries to increase in value after a poor performance last Wednesday through Friday. On Wednesday the US is expected to release its Retail Sales data for the month of July. Positive changes in US retail sales are seen as Bullish, & the preferred movement of the economy. In addition, the FED will be releasing its Open Market Committee minutes which will give market analysts a clear insight into the future US interest rate policy.