Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Subscribe
Please try again
Select

Live Webinar Events

0

Economic Calendar Events

0

Notify me about

Live Webinar Events
Economic Calendar Events

H

High

M

Medium

L

Low
More View More
Pound May Rise as 2Q UK GDP Data Boosts BOE Rate Hike Bets

Pound May Rise as 2Q UK GDP Data Boosts BOE Rate Hike Bets

Talking Points:

  • British Pound May Rise as 2Q UK GDP Data Boosts BOE Rate Hike Outlook
  • US Dollar Unlikely to Find Follow-Through in Consumer Confidence Report
  • See Economic Releases Directly on Your Charts with the DailyFX News App

Second-quarter UK GDP figures headline the economic calendar in European trading hours. An increase of 0.7 percent is expected, which would mark a pickup from the 0.4 percent gain recorded in the first three months of the year. An upbeat result would reinforce recent comments from BOE officials expressing concerns about wage inflation and fuel speculation about oncoming tightening. Needless to say, such a scenario is likely to bode well for the British Pound.

Later in the day, the spotlight turns to July’s US Consumer Confidence gauge. A slight pullback is expected after the index hit a three-month high in June. US economic news-flow has increasingly outperformed relative to consensus forecasts since mid-May however, opening the door for an upside surprise that may boost the US Dollar. Follow-through may be limited however as investors withhold directional conviction until after the passage of Wednesday’s FOMC policy announcement.

The Australian and New Zealand Dollar rose amid firming risk appetite as some Chinese stocks recovered after yesterday’s dramatic selloff. The Japanese Yen underperformed as firming sentiment put pressure on the safety-linked currency. While mainland shares remained under pressure, Hong Kong’s Hang Seng Index advance over 1 percent having lost more than 3 percent in the preceding session.

New to FX? START HERE !

Asia Session

GMTCCYEVENTACTEXPPREV
23:30AUDWeekly Consumer Confidence Index (JUL 26)112.5-111.8

European Session

GMTCCYEVENTEXPPREVIMPACT
08:30GBPGDP (QoQ) (2Q A)0.7%0.4%High
08:30GBPGDP (YoY) (2Q A)2.6%2.9%High
08:30GBPIndex of Services (MoM) (May)0.3%0.2%Low
08:30GBPIndex of Services (3M/3M) (May)0.5%0.5%Low

Critical Levels

CCYSupp 3Supp 2Supp 1Pivot PointRes 1Res 2Res 3
EURUSD1.07421.09021.09951.10621.11551.12221.1382
GBPUSD1.53401.54441.55021.55481.56061.56521.5756

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

To receive Ilya's analysis directly via email, please SIGN UP HERE

Contact and follow Ilya on Twitter: @IlyaSpivak

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES