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.”
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