There is an extremely light news schedule this week. However the markets have been roiled by the unexpected vote by the United Kingdom to leave the European Union, which has plunged that country into a severe political and constitutional crisis. It is by no means completely clear that the referendum result will even be honored, so it is probable that day-to-day political developments within the U.K. and the E.U. Commission are going to have the greatest impact upon the markets during the week ahead.
There is an election in Spain today (Sunday) which could add to pressure on the E.U. if the anti-Lisbon Treaty Podemos Party wins.
British Pound
It will be a crucial week for the Pound, with political developments concerning the implementation of Britain’s exit from the E>U. and shape of a new government taking center stage. Concerning economic data, Thursday will see a release of Current Account data followed on Friday by Manufacturing PMI data.
U.S. Dollar
It will be a moderately busy week for the Greenback. Tuesday will see releases of Final GDP and Consumer Confidence data. Wednesday will see the release of Crude Oil Inventories data. On Thursday we will get Unemployment Claims numbers, followed by ISM Manufacturing PMI numbers on Friday.
Chinese Yuan
Manufacturing data will be released on Friday.
Euro
Spain is holding a General Election this Sunday.
Canadian Dollar
It will be a very light week for the Loonie, with nothing due except GDP data on Thursday. There is a public holiday on Friday.
