The U.K. is in for a light data week, which means focus could turn to Brexit and countercurrency headlines.
Which market themes should you pay attention to over the next couple of days?
Here’s a short list:
Lower-tier economic releases
- CBI realized sales (Aug 25, 10:00 am GMT)seen jumping from 4 to an index reading of 8 in August
- Nationwide house price index (Aug 28, 1:05 pm GMT)to grow by another 0.5% after 1.7% growth in July
Brexit headlines
- As we saw in last week’s price action, Brexit headlines can overshadow U.K. data releases
- Negotiations between the U.K. and EU will be under the spotlight as the October 2 final negotiation deadline approaches
MPC member speeches
- In its decision earlier this month, Bank of England (BOE) kept its interest rates at 0.1% but warned of a slower economic recovery
- Monetary Policy Committee (MPC) member Andy Haldane (Aug 26, 4:00 pm GMT) will give a speech at the Edinburgh International Culture Summit webinar
- BOE Governor Andrew Bailey will give a (virtual) speech in the Jackson Hole Summit on Friday
Countercurrency headlines
- Second wave concerns in the eurozone could further drag on EUR/GBP
- GDP releases from the U.S., Canada, Germany, France, and Switzerland will give clues on the pace of the global economic recovery
- Coronavirus cases in the U.K. and around the world and the governments’ responses will also affect short-term growth prospects
Technical snapshot
- Stochastic considers the pound “oversold” against the Loonie
- GBP/NZD may soon hit “overbought” status on the daily time frame
- The pound remains in neutral conditions against the safe havens
- EMAs show the pound’s short-term bearish pressure across the board
- GBP remains mostly bullish against USD, NZD, and JPY
- The pound was most volatile against the dollar, Kiwi, and yen in the last seven days
Missed last week’s price action? Read GBP’s price recap for August 17 – 21!
