UK macro events that could impact the pound this week
The pound will be under scrutiny throughout the week, as it could potentially react to a series of important indicators, starting tomorrow with jobs data.
The unemployment rate is expected to rise to 4% in December. The market will keep an eye on average earnings, with growth expected to accelerate. On Wednesday, Sterling could react to inflation data. Last month, the annual inflation rate unexpectedly rose to 4%. On Thursday, first estimate Q4 GDP data is due – and on Friday, its January retail sales, as IGTV’s Angela Barnes summarises.
(AI Video Summary)
Job data
This week in the United Kingdom, there are a few important things happening that could affect the value of the GBP and the overall economy. Let's break it down. On Tuesday, we'll get some job data. Experts are predicting that the unemployment rate will go up to 4% in December. This is a big deal because it tells us how strong the job market is.
Earnings growth
Another thing to keep an eye on throughout the week is average earnings growth. It's expected that earnings will go up, which is a good sign. This shows us how much people are making and can give us an idea of how the economy is doing.
Inflation data
On Wednesday, there will be data about inflation. Last month, the inflation rate unexpectedly rose to 4%. This matters because it can affect how people feel about the economy and what they expect from the government.Thursday is a big day because we'll find out how the UK economy did in the last quarter of 2021. If there's negative growth, it means the country might be in a technical recession. This would be bad for a lot of businesses and could cause problems for the economy as a whole.
Retail sales
Finally, on Friday, we're going to learn about retail sales in January. This will tell us how people are spending their money and how healthy the retail sector is. Any surprising results could affect how people feel about the economy and might change how they spend their money.
GBP
Overall, all of these events are really important because they could affect the value of the pound and how people feel about the economy. They'll give us a good idea of how things are going and could influence decisions that the government makes in the future.
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