How to trade sterling this week
Unlike the Fed and ECB, there’s no Bank of England decision this week. However, IGTV’s Angeline Ong says there are still a few UK macroeconomic indicators could shake the pound in the coming days.
(Video Transcript)
GBP/USD
Besides the Fed and the ECB, a few UK macroeconomic indicators could shake the GBP in the coming days. Let's just have a look at the GBP/USD for you.
Now, the GBP has been trading in a rather interesting space recently because we have seen sterling, this cross rather, grind gradually higher. Inflation has been sticky. It's a similar situation to Australia. Really loads of rate hikes recently haven't been able to bring this inflation down, and especially food prices are still uncomfortably high in the United Kingdom and the rate of growth is also really hot.
We get the unemployment figures which are forecast to rise for a third straight month to 4%, it would be the highest unemployment rate since December 2021. Then on Wednesday, UK GDP is forecast rise 0.2% in April compared to March. This would be the first rise in three months. Also, on Wednesday industrial production and trade balance figures could give this cross further volatility.
EUR/GBP
Let's take a look at the EUR/GBP as well, because this one could potentially give investors in and out points as well. If you want to trade sterling last week this cross broke the December 1st 2022 horizontal support sending the pair to levels not seen since around August last year.
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