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It was mostly a quiet week for the British pound with a lack of major Brexit or economic developments, but what we did get from the U.K. was enough to continue the pressure on Sterling against the majors and place it in net loser territory by the end of the week.
United Kingdom Headlines and Economic data
Monday:
- Anti-Brexit Tory Tries to Stop Next PM Suspending Parliament
- June Sales fail to shine: BRC Retail Sales monitor
Tuesday:
- Bid to block no deal through Northern Ireland Bill falters– as with most cases, the inability to reduce the odds of a no-deal Brexit tends to have a negative effect on the British pound and likely the reason for the broad move lower on the session.
- Ireland will need no-deal Brexit checks, just not at border: minister
Wednesday:
- UK GDP grows 0.3% in May as car production rebounds from pre-Brexit shutdowns
- The total trade deficit (goods and services) narrowed £4.6 billion to £12.6 billion in the three months to May 2019
- No rush for Bank of England to raise rates after a Brexit deal: Tenreyro
- Somewhat of a broad bullish move higher in Sterling against the majors, likely on the back of U.S. dollar weakness after Fed Chair Powell’s comments on the session that virtually guaranteed in traders’ minds that a rate cut was on its way at the end of July.
Thursday:
- Bank of England warns of lending crisis for EU firms after no-deal Brexit
- Bank of England Financial Stability Report
- Bank of England’s Carney speaks on Brexit, IMF job
- BoE says British banks ready for no-deal Brexit, trade war – this statement likely reduced trader’s Brexit fears and could be the catalyst for the broad gains in Sterling pairs during the morning London session.
- A brief pullback in Sterling pairs during the U.S. session is arguably a reaction to U.S. dollar strength, a move sparked by the better-than-expected U.S. CPI data released during the morning U.S. session.
Friday:
