Sterling Under Pressure Again – Key Events to Follow This Week

Sterling Under Pressure Again – Key Events to Follow This Week

The British pound faced continued headwinds last week, sliding to approximately 1.1530 against the euro and hovering around 1.34 versus the dollar. The decline came on the heels of weaker-than-expected UK economic figures. Although summer typically brings calmer trading volumes, the upcoming tariff deadline set by President Trump for early August could keep volatility high a bit longer than usual.

What’s Ahead This Week?

Tuesday – RBA Meeting Notes & Powell’s Comments

Tuesday begins with the Reserve Bank of Australia (RBA) releasing minutes from its latest policy meeting. Investors will be reading between the lines for any indications of future interest rate reductions. Depending on the clarity of those signals, the Australian dollar could experience increased movement.

Later that day, Federal Reserve Chair Jerome Powell is scheduled to speak. Markets will be watching closely, especially amid speculation about his position being at risk. If Powell pushes back on expectations for imminent rate cuts, it could trigger swings in USD-based currency pairs.

Thursday – PMI Reports from Europe, UK, and the US

Preliminary Purchasing Managers’ Index (PMI) figures from major economies are due Thursday. Both the eurozone and UK are anticipated to show slight improvements, possibly providing some relief for the euro and sterling. Meanwhile, US numbers might show a bit of softness, which could apply downward pressure on the dollar. These reports often shape economic sentiment, so traders will be alert.

Friday – UK Retail Sales

Friday closes the week with UK retail sales data, which are expected to show modest gains ahead of the summer season. If the results exceed forecasts, sterling might receive some long-awaited support.

Conclusion

Although trading volumes are thinning ahead of August, this week could still bring notable market action. With trade tensions and central bank commentary in focus, staying informed and ready to respond remains essential.