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It’s gonna be a data-light week for sterling!

Will this keep pound pairs stuck in ranges or are there any catalysts that could spur big moves?

The previous week saw a mixed run as the U.K. currency reacted to risk sentiment and mostly downbeat data.

Here’s a list of potential catalysts you need to pay attention to:

30-year bond auction (May 28)

Overall market sentiment

  • Counter currency flows for pound pairs might continue to be driven by demand for higher-yielders and safe-havens
  • The spotlight is still on COVID-19 vaccine updates, as well as plans by countries and states to ease lockdown measures
  • Market participants are also keeping an eye out for tensions between the U.S. and China, as well as risks of another uprising in Hong Kong

Technical snapshot

  • Stochastic shows that sterling is oversold against the commodity currencies.
  • In particular, GBP/NZD, GBP/AUD, and GBP/CAD could see a return in bullish vibes as sellers take a break.
GBP Pairs Stochastic from MarketMilk
GBP Pairs Stochastic from MarketMilk
GBP Pairs Moving Averages from MarketMilk
GBP Pairs Moving Averages from MarketMilk

Missed last week’s price action? Read GBP’s price recap for May 18 –22!