The start of the week has been dull in the currency markets. The main currency pairs are consolidating sideways given slack trading and lack of strong driver. Still, the currencies, in particular, European ones, should get ready for the coming events over the next few days which will definitely stir markets up.
Euro and sterling are reportedly getting firmer after sluggish dynamics last Friday. Facing a lack of news traders continue to estimate the Friday report from the USA. According to the market expert, the data indicated soaring employment rate, but also slow upturn in wages. The situation can be somewhat cleared up in the next few days after the release of the inflation and retail sale reports to be made on Tuesday and Wednesday respectively, a market analyst believes. The coming data will shine a light to the perspectives of further tightening of Powell-run Federal Reserve.
However, European currencies are said to have their own reasons for a trade rebound. For instance, UK Finance Minister will make the spring statement, which may give more details concerning the state funding status with the Brexit costs. Moreover, the UK will announce country's economic perspective analysis. If insiders detect high financial risks and fears of slower economic growth in the report, the sterling can face massive selloffs.
Meanwhile, the European currency awaits the meeting of the European Central Bank to take place this Wednesday. For reference, ECB's Head was not very optimistic during the last meeting a week ago and made careful statements unwilling to spur EUR bulls. As a result, it will not be a surprise if he does not make any optimistic messages that may boost expectations of early stimulus shutdown in the euro-area, as a market analyst reports.