- Negative Brexit headlines push the British Pound lower.
- Strong UK wages and inflation data may bring GBP a modicum of relief.
The Brand New DailyFX Fourth Quarter Forecasts include a fresh look at GBP.
IG Sentiment Datashow of traders are 59.6% net-long of GBPUSD, a bearish contrarian indicator. However recent daily and weekly sentiment shifts show retail are less net-long on a daily and weekly basis, suggesting that prices may trend higher.
Busy Week with UK Wages, Inflation, Jobs and Retail Sales Releases
Sterling has started the week under pressure and lower across the board after a weekend of yet more negative Brexit deadlines with continued infighting over the shape of the deal weighing. The EU has not yet made a decision but as we stand, the odds of getting any deal signed off by the government or Parliament look slim at best.
UK data may help underpin Sterling this week with average weekly earnings expected to pick-up further, while inflation is also seen nudging higher. UK retail sales on Thursday are also expected to tick-up from last month, which would complete a treble of mildly hawkish economic data.
GBPUSD Daily Price Chart (March – November 12, 2018)
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--- Written by Nick Cawley, Analyst
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