The year has begun with the US firmly in the spotlight. Rising geopolitical tensions involving Venezuela and several other countries have unsettled sentiment, prompting a risk-off move across global markets. In response, the US Dollar has strengthened broadly, while gold has continued to attract demand as a traditional safe-haven asset.
Latest market insights:
- US: Alongside geopolitical developments, investors will be closely watching a busy US economic calendar. Average Earnings and Non-Farm Payrolls data, due for release on Friday, will offer fresh insight into the health of the US labour market and help shape expectations for the months ahead.
- EU: Inflation data is scheduled for Wednesday. The consensus expectation is for inflation to remain steady at around 2%. With price pressures appearing contained, markets are currently not factoring in any interest rate cuts from the European Central Bank this year.
- UK: Faces a relatively subdued week, with no major economic releases due. Over the festive period, Chancellor Rachel Reeves confirmed that the Spring Statement will take place on 3 March, just over three months after the Autumn Budget. The statement is expected to serve as an interim update on the state of the economy rather than a platform for significant policy changes.
As events in Venezuela continue to develop, currency markets are likely to remain sensitive to further developments. If you’re planning to send money abroad and want to understand more about how news from around the world could impact your budget, contact Lumon on +44 (0)204 506 5672 for a free, no-obligation conversation and discover what options you have available to help.
