Pound pairs staged quite the comeback last week on upbeat U.K. data, but can the U.K. currency hold on to its gains for the next few days?
Here are the potential catalysts you should look out for:
Flash PMI reports (Nov. 23, 10:30 am GMT)
- Manufacturing PMI to dip from 53.7 to 50.5 in November
- Services PMI to drop from 51.4 to 43.2 this month
- Weaker business activity is eyed on account of strict lockdown measures to curb the spread of the virus all over the U.K.
- Readings below 50.0 indicate industry contraction while figures above 50.0 reflects expansion
BOE Monetary Policy Report hearings (Nov. 23, 4:30 pm GMT)
- BOE Governor Bailey and some MPC members to speak about inflation and economic outlook in front of the British Parliament’s Treasury Committee
- A downbeat outlook on growth and price pressures could put a drag on pound pairs while an optimistic view could keep the currency afloat
- U.K. Prime Minister Johnson scheduled to speak to European Commission President Ursula von der Leyen to discuss remaining barriers to Brexit deal
- Optimism for an agreement picked up late last week as leaders appeared to reach a compromise on key measures
- Word through the grapevine among several EU ambassadors is that a Brexit deal could be finalized soon
- Long-term trend strength analysis shows that most GBP pairs are giving off bullish vibes.
- The 200 SMA and 50 SMA suggest that GBP/NZD and EUR/GBP are bearish.
- GBP has been most volatile against the commodity currencies over the past seven days.