Sterling managed to stage quite the comeback late last month as a Brexit agreement was ironed out.
Can it extend its gains post-breakup?
There’s not much in the way of top-tier data releases, but here’s what you should look out for:
BOE head Bailey’s speech (Jan. 6, 3:00 pm GMT)
- Guv’nah Bailey is scheduled to give a testimony along with three MPC members, about the Financial Stability Report before the Treasury Select Committee
- Expect questions related to Brexit, as well as the likelihood of more stimulus now that fresh lockdown measures have been imposed
- Hints that the BOE could pursue further easing might force sterling to return its recent gains
- Moving averages, particularly the 200 SMA and 50 SMA, reveal that EUR/GBP, GBP/AUD, and GBP/NZD are looking bearish
- However, Stochastic shows that EUR/GBP is oversold while most of the other pound pairs are in the overbought region
- GBP has been most volatile against the commodity currencies in the past week, moving an average of 76.4 pips against the Kiwi