The French election, geopolitical uncertainty, the Greek debt crisis resurgence and the European Central Bank meeting are all contributing to a progressively busy economic calendar.

Economic data from the eurozone has been encouraging in terms of production, manufacturing and confidence, all providing a solid base for the currency bloc. Strong fundamentals have provided a substantial distraction as geopolitical uncertainty and populist politics continue to incite market anxiety. 

GBP

There is no doubt Theresa May’s move to call a snap election – where she is expected to register a resounding win over Jeremy Corbin et al – has propelled Sterling higher.  Certainly, obtaining a strong mandate has the propensity to feed into confidence, as was neatly illustrated in the unexpected Tory win which averted an awkward coalition-building process.  The problem is that while round support for May is helpful heading into a tense negotiation with EU leaders, a weak opposition is by no means desirable when determining the longer-term direction of the country.

Despite all of the political uncertainty over the last year, the economy has actually performed rather well.  

USD

The US dollar rallied to its highest level against the Canadian dollar in more than a year after the Trump administration imposed a duty on Canadian Lumber exports to the US. 

This move will affect more than $5.6 billion of imports each year to the US and may be the beginning of tricky relations between the two countries. Following the release of the announcement, the US dollar strengthened against its currency peers. Analysts have also suggested that Trump’s administration will make a major announcement on tax reforms that may expedite the approval of his first major bill, markets have reacted positively to this suggestion as the terms of reform are expected to continue Trump’s pro-business agenda.