- No Data
- Current Account Balance and GDP QoQ- Revisions to UK GDP can be very market moving but changes generally not made
Key Levels - GBP/USD
- Support 1.2800
- Resistance 1.3050
There were no major U.K. economic reports released this past week and the calendar remains light next week with only revisions to second quarter GDP numbers on the calendar. GBP/USD broke below 1.30 on the back of Brexit fears shrugging off Bank of England monetary policy committee member Forbes’ optimism. At a speech in London she said the initial Brexit impact was less than expected and she’s not yet convinced that more loosening will be needed. Forbes believes the BoE may be over counting Brexit-uncertainty effect and with faster inflation, current data may lead to upgraded forecasts.However judging from the way sterling reacted to Boris Johnson’s comment on Friday that Article 50 will be invoked early next year, investors and most likely Governor Carney don’t share her positive views. In the coming weeks we expect more Brexit headlines that will stifle sterling’s rally.