Fundamental bias: Neutral
It should be a calm week on the UK front and for sterling next week. The UK-EU trade dispute has calmed and it seems the grace period on chilled meats imports to NI will be extended. The BoE did not bring too much surprise this week and although a little bit more hawkish than expected, still the MPC refrained from pointing at earlier rate hikes. This suggests some stabilisation in sterling ahead and should EUR/USD continue its slow recovery to and above the 1.20 level, it should bring GBP higher with it.
On the UK data front, the final 1Q UK GDP reading (Wednesday) should not bring any surprise, while June housing prices data and may mortgage approvals (both on Tuesday) won’t affect sterling at all. As long as the dollar continues reversing some of its last week’s losses, it should be enough to push GBP/USD mildly higher.
It should be a calm week on the UK front and for sterling next week. The UK-EU trade dispute has calmed and it seems the grace period on chilled meats imports to NI will be extended. The BoE did not bring too much surprise this week and although a little bit more hawkish than expected, still the MPC refrained from pointing at earlier rate hikes. This suggests some stabilisation in sterling ahead and should EUR/USD continue its slow recovery to and above the 1.20 level, it should bring GBP higher with it.
On the UK data front, the final 1Q UK GDP reading (Wednesday) should not bring any surprise, while June housing prices data and may mortgage approvals (both on Tuesday) won’t affect sterling at all. As long as the dollar continues reversing some of its last week’s losses, it should be enough to push GBP/USD mildly higher.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.