All eyes and ears are on the U.K. elections coming up this week, although a victory by the Conservatives seems to be in the bag. How might pound pairs react?
U.K. monthly GDP (Dec. 10, 10:30 am GMT)
- Economy probably expanded by 0.1% in October, rebound over earlier 0.1% contraction
- Data fell short of estimates in two out of the last five months
- Manufacturing production probably recovered by 0.1% after a 0.4% slump
U.K. general elections (Dec. 12)
- Latest batch of opinion polls reflects slowing support for Tories
- Tories need to win 326 seats to secure a majority
- Majority victory for Conservatives likely pound bullish, but “buy the rumor, sell the news” reaction still possible
- Odds of a hung parliament could drag sterling sharply lower
- YouGov to release final set of MRP poll results on Dec. 10
- Stochastic shows that most GBP pairs are approaching overbought conditions, with GBP/USD, GBP/CAD, and GBP/EUR giving off the strongest bearish vibes.
- However, moving averages still put most pound pairs in bullish territory, with the exception of GBP/NZD.
- GBP/AUD is the most bullish of the bunch based on its 200 SMA.
Missed last week’s price action? Check out the GBP Weekly Review for Dec. 2 – 6!