- GBPUSD Expects High Volatility Amid Preliminary GDP Data To Be Shown This Week
GBPUSD Expects High Volatility Amid Preliminary GDP Data To Be Shown This Week
This week, the British Pound will experience some turbulence because of the economic events in store for it. There are the lockdown lifting plans, UK EU Trade Talks, and the UK GDP Data release.
Lockdown Reversal Plan
First, PM Boris Johnson will be talking about his plan on how to get the economy back and running after the lockdown. While he did give an initial speech last Sunday, he did not give any details. We can expect a 50-page blueprint in order to fill in the the details.
UK-EU Trade Talks
Another event that will affect the GBP is the UK-EU Trade Talks. From the last session, there have been tensions between the two nations wherein the UK was not engaging to certain points brought up by the EU. The UK has denied this claim. Further tensions may cause some pressure on the GBP the longer this goes on. Both the EUR and the GBP are expected to take hits due to the war of words.
Q1 GDP Data Release
Lastly, there is the release of the Q1 GDP Data of the UK which is to happen this Wednesday. The data will present a clear picture of what has happened to the economy due to the effects of the lockdown. The preliminary q/q data is pointed at a decrease from 0% to -2.5% while the y/y data is expected to have a sharp decrease from 1.1% to up to -2.1%. The data release this week will showcase whether the numbers are up to expectations or not.
What’s to Happen Next to the GBP
Currently, the GBPUSD currency pair is moving at a range bouncing between the 1.26404 and the 1.22681 levels. This is a pretty common type of ranging movement that may signal a big move. For now, the sentiment is mixed but the next coming days will be able to point the direction of the pair.
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