Brexit continues to hog the spotlight in terms of pound price action… and for good reason! Here’s what’s coming up next.
U.K. GDP and manufacturing production (Oct. 10, 8:30 am GMT)
First up, we’ve got a couple of top-tier economic reports to look out for on Thursday’s London session.
The August GDP reading is up for release and number crunchers predict that U.K. economic growth stagnated for the month after printing a 0.3% expansion in the previous month. Note that this figure has come in below expectations in three out of the last five months, so there could be a chance of a downside surprise.
Along with this, the manufacturing production figure for August is also due. Analysts expect to see a meager 0.1% uptick after the earlier 0.3% gain, but this report has also missed the mark in three out of the last five months.
BOE Governor Carney’s speech (Oct. 10, 9:20 am GMT)
BOE head honcho Carney is scheduled to give a testimony sometime in the middle of Thursday’s London session,so market watchers could attempt to glean some monetary policy clues from his remarks.
However, this speech is just part of t the £20 banknote launch event in England, which means that it could just be short and sweet… and also a non-event. Still, be mindful of additional volatility in case the Guv’nah drops some remarks related to policy or Brexit.
After the latest turn of events, PM Johnson now faces a deadline on October 11 to deliver an acceptable proposal for the EU to reopen negotiations for the transition deal.Keep in mind that EU officials have been insistent that they neither open to further negotiations nor extending the Brexit deadline past October 31. However, MPs have passed a law which will force No. 10 to ask for a three-month delay to Brexit if there’s no deal by October 19, a couple of days after the EU Summit.
So far it’s not looking good, as Irish PM Varadkar said Johnson’s proposals “do not fully meet the agreed objectives” and Her Majesty herself has looked into sacking Johnson for his failed prorogation stunt.
Missed last week’s price action? Read the GBP price recap for September 27 – October 4!