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The pound capped a choppy week in the green last week. Can pound bulls extend the upswing this week?
Here are the potential headlines that might affect the pound’s intraweek trends:
Closely watched economic releases
- Services PMI (Oct 5, 8:30 am GMT) could fall from 58.8 to 55.1 in September
- Construction PMI (Oct 6, 8:30 am GMT) to dip from 54.6 to 53.7?
- Industrial production (Oct 9, 6:00 am GMT) seen at 2.6% from 5.2% growth in July
- Manufacturing production (Oct 9, 6:00 am GMT) could drop from 6.3% to 2.8% in August
- NIESR’s monthly GDP tracker (Oct 9, 6:00 am GMT) to show 9.1% growth vs. 7.0% uptick in September
Brexit updates
- Over the weekend, U.K. PM Boris Johnson and European Commisson’s Ursula von der Leyen agreed to “work extensively” on a deal despite finishing last week’s negotiations without an agreement
- Barring inflammatory headlines, optimism over continuing talks can continue to support GBP
Countercurrency price action
- COVID-19 updates (stimulus, lockdown, vaccine, economic recovery) headlines from around the world can influence the demand for the pound
- Top-tier events like central banker statements and U.S. election updates can also affect GBP’s intraweek trends
Technical snapshot
- The pound gained the most against the yen, dollar, and the euro
- It also lost value to the Aussie and Kiwi in the last seven days
- GBP/USD is on short and long-term bullish trends
- There’s short-term bullish pressure against the yen, dollar, euro, and the Loonie
- Watch out for retracement or reversal opportunities on GBP/CHF, GBP/NZD, and GBP/AUD
- The pound saw the most volatility against the safe havens and the euro in the last seven days
Missed last week’s price action? Read GBP’s price recap for Sept 28 – Oct 2!