BRITISH POUND
Data Review
- Bank of England Leaves Rates Unchanged
- CPI (MoM) 0.3% vs. 0.4% Expected
- PPI Input n.s.a. (MoM) 0.2% vs. 0.6% Expected
- PPI Output n.s.a. (MoM) 0.1% vs. 0.3% Expected
- House Price Index (YoY) 8.3% vs. 8.7% Prior
- Jobless Claims Change 2.4k vs. 1.8k Expected
- Average Weekly Earnings (3M/YoY) (JUL) 2.3% vs. 2.1% Expected
- ILO Unemployment Rate (3M) (JUL) 4.9% vs. 4.9% Expected
- Retail Sales (MoM) -0.3% vs. 2.1% Prior
- Retail Sales (YoY) 5.9% vs. 4.8% Expected
Data Review
- No Data
Key Levels - GBP/USD
- Support 1.2800
- Resistance 1.3350
Finally the focus will shift away from sterling next week. The UK’s heavy economic calendar put sterling on centre stage last week but it wasn’t until Friday when Brexit headlines hit the wire that sterling broke down. According to Bloomberg, the U.K.’s Johnson said Brexit talks are likely to start early next year which isn’t surprising but according to Chancellor Hammond, they are ready to “accept that Britain may have to give up membership of the European Union's single market -- and U.K. banks' crucial access to clients on the continent -- to achieve the immigration restrictions that voters have demanded, according to two officials familiar with his thinking." If true, this is a major sacrifice that sterling won’t be able to handle. Meanwhile the Bank of England left interest rates unchanged and provided very little guidance on their future plans. We know that rates could and may still fall especially if there is a lot of uncertainty after Article 50 is invoked
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