Sterling managed to shake off bearish vibes from downbeat data last week to emerge a net winner. Can it keep up its lucky streak?
Which catalysts can affect your pound trades?
Inflation reports (Nov. 18, starting 8:00 am GMT)
- Headline CPI to hold steady at 0.5% in October
- Core CPI likely stayed unchanged at 1.3% as well
- Producer input prices to advance from 1.1% to 1.2%
- Producer output prices probably saw 0.1% rebound after earlier 0.1% dip
- Note that BOE left their inflation forecasts unchanged in latest meeting
- BRC price shop index, which is considered a leading indicator of inflation, signaled a slight pickup in price pressures
Retail sales (Nov. 20, 8:00 am GMT)
- Consumer spending likely slipped 0.4% in October after earlier 1.5% gain
- This comes right before the second national lockdown in the U.K. so there could be a chance that panic-buying lifted grocery spending towards the end of the month
- A larger than expected drop, on the other hand, could make traders wary of a more severe downturn in consumer spending now that lockdown measures are being put in place
- Negotiations between the EU and the U.K. could carry on until this week as talks remain deadlocked on key issues
- A breakthrough in the trade agreement could be bullish for GBP as this might lift some uncertainty off the economy
- Still, there is a chance that any deal might not be ratified if the government overrules the House of Lords and reintroduces parts of the internal market bill
- Stochastic is giving off bearish vibes for GBP/CAD, which is in the overbought zone.