News and economic event analysis disclaimer: This fundamental report is not advice or a recommendation to trade or invest, it is educational and general information only. Don’t blindly buy and sell the markets/products discussed in this article, do your own research and be aware of the risks and rewards.
GBP Main Focus This Week:
- Economic Data Type: UK Inflation Data
- Time Server: Wednesday, 8.30
- Quick view: The UK’s manufacturing and manufacturing sector recorded a drop in prices. Inflation data reading in May is expected to decline slightly as energy prices decline.
- Economic Data Type: UK Retail Sales Data
- Server Time: Thursday, 8.30
- Quick view: Retail sales are expected to decline for May at 0.5% after horizontally in April.
- Economic Data Type: BOE Interest Rate Determination
- Server Time: Thursday, 11.00
- Quick view: The market expects interest rates to be maintained at the 0.75% level. However, the previous central bank of England has stated the intention to raise interest rates by taking into account inflation and also the crisis.
Quick View: Dovish
- 9 members of the Bank of England voted to maintain interest rates in the UK at 0.75%.
- The next BOE meeting is on 20 June 2019.
- The Bank of England’s economic data focus on Gross Domestic Product, Consumer Price Index, and Unemployment.
- The Bank of England says that interest rate hikes will be gradual and limited due to continued concern about Brexit.
Main Economics Data of BOE
- Gross domestic product in the United Kingdom expanded at 1.8% in the first quarter of 2019, up from 1.4% in the previous period.
- The UK unemployment rate fell to 3.8% in the first quarter of 2019, the lowest level since October to December 1974 and slightly below the market expectation of 3.9%.
- The annual inflation rate of the United Kingdom rose to 2.1% in April 2019 from 1.9% in the previous month but below market expectations of 2.2%.
Expected Bias: GBP Bearish
- Investors are uneasy about the new Prime Minister’s ability to control the situation of Britain’s withdrawal without the European Union’s joint agreement.
- GDP growth and Britain’s industrial output contracted.
- Britain’s economy finally began to feel the impact of Brexit’s turmoil and uncertainty.