GBP Weekly Forecast – Brexit To Overshadow BOE?

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

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

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