The spotlight could stay on U.K. fundamentals this week, as the quarterly GDP and monthly jobs figures are up for release.
Here’s what to expect.
Employment data (Aug 11, 7:00 am GMT)
- July claimant count to show 250K increase after previous 28.1K drop
- Average earnings index to print 1.2% decline in the three-month period ending in June
- The unemployment rate likely to climb from 3.9% to 4.2%
- Weaker than expected results could push GBP pairs further south
Preliminary GDP (Aug. 12, 7:00 am GMT)
- The economy probably contracted by 20.5% in Q2 2020
- This would put the U.K. in a technical recession after the previous 2.0% quarterly contraction
- Monthly GDP reading likely to print 8.1% growth for June
- Long-term trend strength analysis paints a mixed picture of GBP pairs, with half in bullish territory
- GBP/NZD, GBP/AUD, and GBP/CHF are looking bearish but the trend is weakening
- EUR/GBP is giving off bullish vibes but its trend is weakening as well
- Stochastic puts some GBP pairs in the overbought zone, particularly Cable, Guppy, and GBP/NZD