BRITISH POUND FORECAST: STERLING EYESUK GDP REPORT FOR IMPACT OF BREXIT UNCERTAINTY – GBP/USD, EUR/GBP, GBP/JPYUK GDP for 4Q-2019
BRITISH POUND FORECAST: STERLING EYESUK GDP REPORT FOR IMPACT OF BREXIT UNCERTAINTY – GBP/USD, EUR/GBP, GBP/JPY
- UK GDP for 4Q-2019 is slated to cross the wires throughout Tuesday’s buying and selling session and boosts the potential for volatility within the British Pound
- Spot GBP/USD and EUR/GBP additionally look to central financial institution speeches from BOE Governor Carney, Fed Chair Powell and ECB President Lagarde whereas GBP/JPY eyes coronavirus developments as properly
- GBP value motion could face further weak point if the UK financial system slumps worse than initially thought amid peak Brexit uncertainty
Currency volatility within the Pound Sterling is ready to spike over the following 24-hours with the discharge of 4Q-2019 UK GDP information anticipated February 11 at 9:30 GMT.
Owing largely to sustained Brexit uncertainty, which has weighed negatively on enterprise funding and the broader British financial system, UK GDP progress is anticipated to sluggish to a negligible 0.8% year-over-year price.
CHART OF UK GDP (QUARTERLY)
A return to optimistic progress in 3Q-2019 after contracting on a quarter-over-quarter foundation in 2Q helped the UK narrowly escape slipping right into a technical recession, however draw back dangers to UK financial outlook nonetheless linger.
As such, the British Pound could also be in jeopardy of reversing its string of positive aspects recorded that stemmed from the inflow of Brexit deal optimism late final 12 months.