- Brexit outlook looking better, UK Q3 GDP on Friday.
- US mid-terms Tuesday/Wednesday may see a shift in the House.
The Brand New DailyFX Fourth Quarter Forecasts include a fresh look at GBP.
IG Sentiment Data show of traders are 66.7% net-long of GBPUSD, a bearish contrarian indicator. However recent daily and weekly sentiment shifts give us a mixed trading bias.
Busy Week but Brexit Holds the Steering Wheel
In a week in which we have the US mid-term elections, the latest FOMC meeting and the first look at UK Q3 GDP, Brexit remains the dominant important market driver and trumps all other releases/events. The US mid-terms on Tuesday may have an effect on GBPUSD if they Democrats regain the House, while the Senate is expected to remain in GOP hands.
UK Q3 GDP is expected to show a pick-up to 0.6% from 0.4% in Q2 but economic expansion is expected to weaken in Q4 back to around 0.2%. The latest Brexit rumours are that the EU and UK are closing in on a deal, but concerns remain around the Irish border impasse. PM May is meeting with ministers on Tuesday and there is talk that if an agreement looks likely, then an announcement will be made at the end of the week about a special EU meeting later this month.
The DailyFX Economic Calendar provides a detailed list of all major, global economic releases.
GBPUSD Daily Price Chart April - November 5, 2018
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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
