- Irish border still unresolved and PM May could suffer.
- UK jobs, wages and inflation data on Tuesday and Wednesday.
The Brand New DailyFX Fourth Quarter Forecasts include a fresh look at GBP.
IG Sentiment Data show of traders are 61.7% net-long of GBPUSD, normally a bearish contrarian indicator. However recent daily and weekly sentiment shifts give us a mixed outlook for the pair.
Brexit Stalemate Ahead of EU Summit Meeting
The EU and the UK are still unable to resolve the Irish border issue, putting trade negotiations on hold as EU leaders meet mid-week. Releases/tweets over the weekend from Michel Barnier and Dominic Raab said that while progress had been made, ‘key issues remain’ with the EU now looking for a second Irish border backstop, something that Brexiteers within the UK Conservative Party will likely reject. Sterling faded lower on the back of the news but losses were limited ahead of the EU Summit meeting.
UK heavyweight data makes a return this week with the monthly look at jobs, wages, retail sales and inflation, all market moving releases in their own right. Whether they will move Sterling is questionable as Brexit continues to dominate the market.
GBPUSD Four-Hour Price Chart (August 29 – October 15, 2018)
Economic Calendar is Heavy
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DailyFX has a vast amount of updated resources to help traders make more informed decisions. These include a fully updated Economic Calendar, Educational and Trading Guides and the constantly updated IG Client Sentiment Indicator.
--- Written by Nick Cawley, Analyst
To contact Nick, email him at nicholas.cawley@ig.com
Follow Nick on Twitter @nickcawley1
