GBP May

GBP 27-31 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.

GBP Main Focus This Week: 

  • Economic Data Type: None
  • Server Time: None
  • Quick view: In the UK, Prime Minister Theresa May has announced he will resign his post on June 7 after continuing to fail to get support for his Brexit agreement.

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 focuses 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

  • The UK jobless data shows that the quarterly pay growth for the end of March is lower than expected.
  • The inflation rate in the UK comes under market expectations.
  • British Prime Minister Theresa May, who announced his resignation in June after failing to break the deadlock on his support for his Brexit plan over the years.

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