GBP 20-24 May Fundamental Report

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.

Quick View: Dovish

  • 9 members of the Bank of England(BOE) voted to maintain its interest rate in UK at 0.75%.
  • Closest date of BOE meeting will be held on 20th June 2019.
  • BOE main economic data will be focusing on Consumer Price Index CPI, Gross Domestic Product GDP, and unemployment rate.
  • BOE stated that increment in interest rate will be gradually due to fear of BREXIT.

Main Economics Data of BOE

  • Gross domestic product in United Kingdom grew 1.8% in Q1 2019, increased from 1.4$ in the previous quarter.
  • The unemployment rate in United Kingdom saw a decrease to 3.8% in Q1 2019, the lowest since October till December 1974, below expected of 3.9%.
  • Inflation rate in United Kingdom was 1.9% in March 2019, flat with no change in the previous month, as well as below expected of 2.0%.

Expected Bias: GBP Bearish

  • The British government and the opposition parties have failed to reach agreement in negotiations and at the same time continue to challenge Prime Minister Theresa May’s position in leadership.
  • The United Kingdom’s employment data indicate that pay growth for the quarter end-March is lower than expected.

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