Autumn Statement day in the UK. Big day for UK residents and a big day for the Pound. Expectations are for tax hikes and spending cuts. This seems to have been baked in to Pound rates already. The inflation numbers out yesterday unfortunately support these measures so the cost of living situation will not only continue to dominate headlines, but could conceivably get worse. Bit doom and gloom unfortunately.
The devil will be in the detail during the statement. Analysts and traders will have placed their trades based on what spending cuts and what tax hikes are announced. Any deviation from the consensus could see Pound rates hit with a wave of volatility....equally it might all be a storm in a teacup and not much happens as the news is already priced in.
GBP/EUR and GBP/USD rates have calmed down close to the top of the recent peaks. Either the rates are waiting at the gate to crack on or they could falter from here. It's going to be an interesting day. The statement isn't necessarily scheduled, but tends to take place around lunch time.
Other than that it's a reasonable day in the news with European inflation data and US employment data out later and the UK releases it's retail sales numbers at breakfast tomorrow. The ECB President, Christine Lagarde, also gives a speech at late breakfast tomorrow.
Today’s Economic Calendar
EUR: 10:00 Inflation Data
US: 13:30 Employment Numbers
UK: Friday 07:00 Retail Sales
EUR: Friday 08:30 ECB President, Christine Lagarde's Speech
As ever we look forward to keeping you in the loop and look out for our next update.
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