This could shape up to be an exciting week for sterling pairs as the U.K. will be printing its Q1 2019 GDP later in the week. What should you expect?
BOE MPC members’ speeches (starting May 7, 8:00 am GMT)
Before all that GDP action, a number of MPC members will be making testimonies in the earlier part of this week.
First up is BOE Deputy Governor Jon Cunliffe who will be speaking on financial stability at CFO Agenda 2019 in London. A few hours later, BOE Chief Economist Andy Haldane will deliver a speech titled “Is all Economics Local” at the Sheffield Economy Research Institute.
On Wednesday’s London session, BOE Deputy Governor David Ramsden will be speaking at the Association for Financial Markets in European Post Trade Conference.
U.K. monthly and quarterly GDP (May 10, 8:30 am GMT)
Before the week comes to a close, the U.K. will release its March GDP reading, along with the Q1 2019 growth figure. For the month of March, analysts are expecting to see a flat reading after the earlier 0.2% uptick.
This could be enough to bring the quarterly GDP to 0.5%, which would mark a pretty decent improvement compared to the previous quarter’s tepid 0.2% growth figure.
Keep in mind that much of this growth could stem from businesses stockpiling in anticipation of a possible “no deal” Brexit back then, something that was evident in the inventory and orders components of PMI surveys.
Also note that retail sales turned out mostly stronger than expected while wages kept ticking higher in the first few months of the year. Manufacturing production data is also up for release at the same time, and a 0.1% uptick is eyed.
Missed last week’s price action? Read GBP’s price recap for April 29-May 3!