Sterling Struggles Continue- What to Watch This Week

It was another tough week for Sterling, dropping to around 1.1530 against the Euro and settling near 1.34 against the Dollar, mostly due to disappointing economic data out of the UK. With July nearly wrapped up, markets typically begin to slow down for the summer—but with President Trump’s tariff deadline looming in early August, things might stay lively a bit longer.

So, what should you keep an eye on this week?

Tuesday: RBA Minutes & Powell’s Speech

We start Tuesday with the Reserve Bank of Australia (RBA) releasing their latest meeting minutes. Everyone’s expecting hints on their next interest rate cut, so the Australian Dollar might see some moves depending on how clear they are about further cuts ahead.

Later in the day, Fed Chair Jerome Powell will speak, which could shake things up a bit, especially given the recent drama about President Trump possibly replacing him. If Powell stands firm against cutting rates soon, expect some volatility for USD pairs.

Thursday: PMI Numbers from Europe, UK, and U.S.

On Thursday, we have early PMI data coming from Europe, the UK, and the U.S. Europe and the UK are looking better this month, which could give the Euro and Sterling some support. On the other hand, the U.S. data might come in a bit weaker, potentially dragging the Dollar down slightly. These numbers often hint at where economies are headed, so traders will definitely be paying close attention.

Friday: UK Retail Sales

Finally, Friday wraps up with UK retail sales, expected to improve as usual heading into the summer. Any positive surprises here could provide a welcome boost to Sterling after a tough couple of weeks.

Final Thoughts

It might be quieter than usual this week, but markets can still surprise us, especially with tariffs and political headlines hanging around. As always, if you have any questions or need some help navigating the markets, feel free to reach out—I’m here to help!