Pound bulls remain optimistic that a Brexit deal could be reached. Will we see concrete developments this week?
Check out the top catalysts that might influence your pound trades:
Inflation numbers (Oct 21, 6:00 am GMT)
- Dining discounts helped drag consumer prices near their five-year lows in August
- The weakness was mostly expected, so traders focused on the risk rally ahead of the Fed’s policy statement
- Analysts see the monthly prices rising by 0.3% in September, while the annual figure could remain at a 0.2% growth
- Subdued prices can fan discussions of more QE or negative interest rates from the Bank of England (BOE)
Other lower-tier economic releases
- Public borrowing (Oct 21, 6:00 am GMT) to clock in at 42.4B vs. 35.9B in September
- CBI industrial order trends (Oct 22, 10:00 am GMT) to improve from -48 to -42 in October
- GfK consumer confidence (Oct 22, 11:01 pm GMT) seen weakening from -25 to -28 in October
- Retail sales (Oct 23, 6:00 am GMT) to see a 1.3% dip (from 0.8% growth) in September
- Annualized retail sales could slow down from 2.8% to 1.0%
- Manufacturing PMI (Oct 23, 8:30 am GMT) could show manufacturing slowdown (from 54.1 to 53.2) in October
- Services PMI (Oct 23, 8:30 am GMT) to print at 53.4 after a 56.1 reading in September
Brexit updates
Technical snapshot
- The pound has lost value against all of its major counterparts except the Aussie in the last seven days
- GBP weakened the most against the dollar, yen, and the Kiwi
- Daily SMAs reflect the pound’s bearish trends against the franc, loonie, and the yen
- Watch out for retracement or reversal opportunities on GBP/NZD, GBP/CHF, and GBP/JPY
- GBP was most volatile against USD, JPY, NZD, and AUD in the last seven days
This post first appeared on babypips.com
