GBP June

GBP 24th-28th June 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.

GBP Main Focus This Week: 

  • Economic Data Type: Britain’s GDP Growth Data
  • Time Server: Friday, 8:30
  • Quick view: The final reading of growth data in Britain for the first quarter of this year is expected to record an increase of 0.5% compared to previous declines.

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 1 August 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.
  • The central bank lowered its economic outlook to zero in the second quarter of this year from a previous estimate of 0.2% growth.

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.
  • The UK inflation rate fell in May 2019.
  • The Bank of England reduced its forecast of economic growth.

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