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With market attention firmly on Brexit politics this week, analysts at TD Securities think the new monthly UK GDP series may get off to a fairly quiet start.

Key Quotes

“The data may emerge as a significant directional driver for sterling in the months ahead once investors gain experience with the indicator. For now, politics will remain a distraction while our expectation for a BoE rate hike next month provides an anchor for spot.”

“This leaves us inclined to think GBPUSD will continue to “climb the wall of worry” this week against support at 1.3315. A solid set of macro outcomes and a further stabilization of the UK political backdrop could see a test of 1.3470. Success there could see additional short-covering emerge as we think the USD’s rally against the G10 complex is running out of steam more broadly.”