What should we expect in the upcoming Brexit drama this week? And will there be any economic reports that could steal the spotlight? Here’s what’s up.
U.K. monthly GDP (Sept. 9, 8:30 am GMT)
First up, we’ve got the July GDP reading up for release on Monday’s London session. Number crunchers predict that the U.K. economy grew by a meager 0.1% during the month, still an improvement over the earlier flat reading.
Along with this, the manufacturing production figure will be released and estimates are for a 0.3% decrease, following the previous 0.2% dip. A weaker than expected read might confirm that businesses are starting to scale down activity leading up to Brexit.
U.K. jobs data (Sept. 10, 8:30 am GMT)
Next, the U.K. employment figures are up for release, and of particular interest is the average earnings index. This is the three-month rolling average of wage growth and is often seen as a preview of consumer spending and inflation.
Analysts aren’t expecting any changes in the average earnings index at 3.7% for July. Meanwhile, the claimant count change is slated to increase to 29.3K, which would mean a larger increase in joblessness compared to the previous 28K gain.
Lastly, the unemployment rate is also up for release and no changes to the 3.9% figure are eyed.
There were plenty of plot twists in last week’s Brexit drama episodes, including another crushing defeat for PM Johnson in Parliament, a Rebel Bill, and strong demands for another election.
The U.K. Parliament is slated to be suspended later this week until the Queen’s Speech on October 14 – something that has already gotten the thumbs-up from Her Royal Majesty. However, lawmakers are still hopeful they can be able to pass a bill that rules out a “no deal” Brexit before the prorogation period starts.
And then there’s the issue of a general election that might even bring the possibility of seeing a new Prime Minister next month! PM Johnson wants this to take place by October 15, just before the EU Summit on October 17 and 18.
With that, it wouldn’t be surprising to see more butting of heads throughout the week, and the updates could bring volatility to pound pairs. As of this writing, the things to watch out for this week include the royal assent on the Benn Bill and another chance for MPs to vote on early elections.
Missed last week’s price action? Read the GBP price recap for September 2-6!