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Top tier U.K. news and catalysts were light and volatility was relatively low, but the British pound saw some action nonetheless.  Global risk sentiment and geopolitical themes were likely the main drivers for Sterling’s eventual net negative performance.

Overlay of GBP Pairs: 1-Hour Forex Chart
Overlay of GBP Pairs: 1-Hour Forex Chart
GBP Weekly Performance from MarketMilk
GBP Weekly Performance from MarketMilk

United Kingdom Headlines and Economic data

Monday:

BOE’s Bailey Signals Dramatic Shift Toward Stimulus

Bank of England’s Bailey says QE bond sales should precede rate rises

UK Manufacturer output volumes in the three months to June fell at the fastest rate on CBI survey record

Tuesday:

Flash U.K. Manufacturing PMI at 50.1 in June vs. 40.7 in May – we saw a broad move lower in Sterling that seems to correlate with this news, but the negative was short lived as the pressure stabilized on positive global risk vibes during the U.S. session on rising U.S. tech sector strength.

Wednesday:

No direct major catalysts or headlines from the U.K. on Wednesday, so the uniform drop in Sterling on the session is likely due to broad risk aversion sentiment and tariff news. Traders moved towards safety as news of rising covid cases, negative global economic outlook, and geopolitical tensions (U.S. is considering $3.1 billion in new tariffs on products from France, Germany, Spain and the UK) hit the wires.

Thursday:

UK Retailers remain pessimistic over near-term outlook– CBI survey

EU parliament leader: Boris Johnson seems unwilling to find compromise in Brexit talks

Bank of England says may toughen rules for non-banks

Friday:

No major economic or headline catalysts for Sterling on Friday, but we did see a broad move lower in the British pound against the majors, likely on Brexit talks uncertainty and as the U.K. eases lockdowns as COVID-19 infections rise globally.