Sterling was still down in the dumps for the previous week as there were hardly any reports that lifted its spirits. Will this continue?
U.K. monthly GDP (July 10, 8:30 am GMT)
The gross domestic product a.k.a. economic growth report card for the month of May is up for release this week. Traders are expecting to see a 0.3% expansion, which would be a rebound over the earlier 0.4% contraction.
Keep in mind, however, that the actual figure has been missing the mark for the past couple of months already so there could be a chance of a downside surprise. If so, this would suggest that the U.K. economy is still feeling the jitters for a potential “no deal” Brexit outcome.
Along with this report, the U.K. manufacturing production figure will also be printed and might show a 2.2% recovery over the earlier 3.9% drop. Now this might have a bigger impact on pound price action since it’s considered a leading indicator of economic performance.
U.K. PM Race
Pound traders are still in wait-and-see mode for the Prime Minister race, although it seems that front runner Boris Johnson might be raking in even more brownie points versus underdog Jeremy Hunt.
The final vote isn’t due until July 22, which means that the focus over the next couple of week would be on their Brexit plans and what their “no deal” options would be.
Missed last week’s price action? Read GBP’s price recap for July 1-5!