After recent volatility driven by the conflict in the Middle East, currency markets are expected to shift focus back towards economic data and central bank commentary this week. A series of high‑profile speeches and key data releases could influence sterling and the euro in particular, something worth keeping an eye on if you have an upcoming international payment or are planning ahead.
Latest market insights:
Following heightened geopolitical uncertainty, attention now turns to policymakers and data that could shape near‑term interest rate expectations.
- Bank of England (BoE) speeches (Tuesday & Wednesday): Governor Andrew Bailey is due to speak on both evenings, with markets listening closely for clues on how the Bank views inflation, growth and the outlook for UK interest rates.
- European Central Bank (ECB) President Lagarde speaking Tuesday evening: Comments from Christine Lagarde may influence early Wednesday trading, particularly for EUR pairs. Hints around inflation or future policy could cause short‑term euro volatility.
- Key UK data releases on Thursday: February GDP, along with industrial and manufacturing production figures (month‑on‑month and year‑on‑year), are due. Stronger or weaker data can affect expectations for UK rates, and in turn, GBP exchange rates.
- Eurozone inflation data for March will be released (Thursday), capturing the early impact of recent geopolitical developments. Inflation outcomes may shape ECB rate expectations, influencing EUR movements.
Key data to watch later this week
UK:
- Band of England speech(s) – Tuesday & Wednesday
- GDP, Industrial and manufacturing production data releases – Thursday
EUR:
- European Central bank President Lagarde speech – Tuesday
- Eurozone Inflation data for March – Thursday
If you have upcoming currency requirements or would like to discuss how these events could affect your plans, we’re here to help, contact Lumon on +44 (0)204 506 5672 for a free, no-obligation conversation and discover what options you have available to help.
