This past week, the financial markets were relatively calm, as anticipated, due to a dearth of significant data releases. The cable, traded within a narrow range of around 100 pips. The Pound has seen a gradual decline in value, particularly against the JPY and the CHF. Given that the Pound was at multi-year highs against both currencies, this pullback was expected.

The week kicked off with bank holidays in both the UK and the US, leading to a slow start. It wasn’t until Tuesday that we saw the first major release: the US consumer confidence figures. Forecasts had predicted a drop from 97.5 to 96, but the actual figures came in at 102. This unexpected uptick suggests that market conditions in the US might be more robust than initially thought.

This positive sentiment was reinforced by Thursday’s release of the US Preliminary GDP q/q figures. Forecasts had anticipated a slight drop to 1.2%, but the actual figures were 1.3%. Although the increase was marginal, it, coupled with the Federal Reserve’s stance of not ruling out further rate hikes this year, indicates that inflationary pressures might not yet be fully under control.

Additionally, US unemployment figures were released, showing a slightly higher rate than expected. Despite this, there wasn’t much to significantly shift the markets, given the limited data from the UK and the primary focus on the Eurozone’s CPI as the only significant point for the ECB.

Looking ahead to next week, we again will see limited data from the UK. Consequently, the emphasis will be on the Eurozone and the US to regain lost ground. The ECB is set to announce its latest interest rate decision. The market has already priced in a hold at the current rate, so any hike or cut will likely result in significant market movement

In the US, the main event will be the non-farm employment data due next Friday. Traders and analysts will be closely monitoring these figures to see if the US can continue the positive momentum observed this week.