GBP: From Famine to Feast

GBP: From Famine to Feast - BOE, Hard Data and Brexit

Talking Points:

  • UK information releases include, Inflation, jobs and wages
  • Bank of England MPC announcement
  • EU Council assembly on a EU/UK transition period.

Fundamental Forecast for GBP: Neutral

While we sojourn neutral on Sterling during this stream point, GBP might be in for a hilly float subsequent week with marketplace relocating information points including inflation, jobs and salary as good as a latest financial process proclamation from a Bank of England. And only to spin a week off, a EU Council will accommodate on Thursday/Friday to plead a latest EU/UK transition duration papers with UK businesses watchful for a outcome.

The latest acceleration and salary information might good see a opening between a dual slight serve – acceleration approaching to trip lower/wages approaching to parasite aloft – giving a UK consumer some-more income in their pocket. The new disastrous genuine salary opening has weighed on a UK retailers in sold and any squeezing of a opening might move acquire service to a high street.

The Bank of England is approaching to leave all financial process levers inexperienced on Thursday though any change in voting settlement on rate hikes, or hawkish explanation in a concomitant matter might concrete a rate travel during a May meeting, boosting a British Pound.

The UK and a EU are targeting subsequent week’s EU Council assembly to finalise a Brexit transition period, giving supervision and businesses a clarity a need to build for a future. While negotiations have taken a slight spin for a improved of late, with both sides adopting a some-more accommodating tone, there probability of a last-minute join is still really real, an eventuality that would strike both GBP and EUR lower.

GBPUSD Price Chart Three Hour Timeframe (February 27 – Mar 16, 2018)

GBP: From Famine to Feast - BOE, Hard Data and Brexit

— Written by Nick Cawley, Analyst.

You can hit a author around email during nicholas.cawley@ig.com or around Twitter @nickcawley1.

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