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Another week, another standstill in Brexit talks? Or can the BOE decision steal the spotlight this time?

Here’s what pound traders are looking out for this week.

Mid-tier U.K. data

  • Claimant count change (Dec. 15, 8:00 am GMT) to show 10.5K increase in joblessness, average earnings index to climb from 1.3% to 2.2%
  • Headline CPI (Dec. 16, 8:00 am GMT) to dip from 0.7% to 0.6%, core figure to fall from 1.5% to 1.4%
  • December manufacturing PMI (Dec. 16, 10:30 am GMT) to improve from earlier 55.6 figure
  • December services PMI (Dec. 16, 10:30 am GMT) to rise from 47.6 to 50.5
  • Retail sales (Dec. 17, 8:00 am GMT) to post 4.0% slide after earlier 1.2% gain

BOE policy decision (Dec. 17, 1:00 pm GMT)

  • No actual changes to interest rates and asset purchases expected
  • MPC minutes to reflect unanimous vote to keep monetary policy unchanged
  • Central bank officials might discuss contingency plans in the event of a “no deal” Brexit

Brexit developments

  • Officials are still scrambling to come up with an agreement before the U.K. leaves the EU by the end of this month
  • European Commission President Von der Leyen said she had a “constructive and useful phone call” with PM Johnson, in which they discussed “major unsolved topics.”
  • Talks have been extended to early this week, but officials have been urged to stick to their “no deal” promise if negotiations still break down

Technical snapshot

  • Most GBP pairs are giving off bullish vibes in the oversold region, except for Cable, Guppy, and EUR/GBP
GBP Pairs Stochastic from MarketMilk
GBP Pairs Stochastic from MarketMilk
  • Moving averages also place GBP/JPY in bullish territory, along with EUR/GBP and GBP/USD
GBP Pairs Moving Averages from MarketMilk
GBP Pairs Moving Averages from MarketMilk

Missed last week’s price action? Read GBP’s price recap for Dec. 7 – 11!