The U.K. is printing some lower-tier data, which could take a backseat if we see any Brexit updates this week.
Which economic reports should we look out for?
Check out the potential catalysts that might influence Sterling’s intraweek trends:
Lower-tier data releases
- Nationwide house prices could slow down from 0.9% to 0.5% and drag its annual reading from 5.0% to 4.7% in October
- CBI realized sales (Oct 27, 11:00 am GMT) seen dropping to -6 after an 11.0 reading in September
- BRC shop price index (Oct 28, 12:01 am GMT) has printed a 1.6% dip two months in a row in September
- Mortgage approvals (Oct 29, 9:30 am GMT) to slow down from 85K to 76K in September?
- Net individual lending (Oct 29, 9:30 am GMT) could improve from 3.1B GBP to 3.5B GBP in September
Overall risk appetite
- The continuation of the Brexit negotiations after the October 15 “deadline” is likely priced in
- Unless there are progress or fresh headlines about the negotiation, GBP will likely take its cues from overall risk sentiment
- Some broad market catalysts include the U.S. Presidential elections, second wave lockdown concerns, quarterly GDP releases from the U.S. and Eurozone, and BOC, BOJ, and ECB’s policy statements
Technical snapshot
- GBP/USD, GBP/CAD, and GBP/JPY saw the most gains in the last seven days
- Only GBP/NZD has lost value in the last week
- EMAs show GBP’s short and long-term bearish trends against JPY, EUR, CHF, and NZD
- GBP/USD is still on a low key uptrend on the daily time frame
- Watch out for retracement or reversal opportunities on GBP/AUD
- The pound was most volatile against the comdolls and safe-havens like the dollar and franc in the last seven days
