GBPUSD gains fragile with all eyes on upcoming Data.

Sterling traded off it’s 1.3185 5-month high yesterday with traders expecting further swings as we await a stimulus package from the US. Although sterling has appreciated against the dollar of late a sharp reversal could be expected if UK data does not meet expectation. The success sterling has seen against the greenback is on Dollar weakness, you only have to look at sterling’s stagnant performance against the euro to see that there is no clear bullish or bearish sentiment fort the pound.

The ONS have this morning announced that employment has decreased by 220k between May and July, the highest quarterly increase in over a decade. Adding unemployment has not surged as much as feared, because large numbers of firms have put employees on the government-backed furlough scheme. Economists warn that we will not see the full effects of unemployment until October when the government’s furlough scheme is curtailed.

There are no further top tier data releases today and attention will shift to the UK’s GDP data and CPI figures from the US.

Economic Calendar

00:50Bank Lending y/y6.20%6.20%
02:30NAB Business Confidence-1
06:05Economy Watchers Sentiment4038.8
07:00Claimant Count Change9.7K-68.5K
07:00Unemployment Rate4.20%3.90%
07:00Average Earnings Index 3m/y1.20%-0.30%
10:00ZEW Economic Sentiment55.359.6
10:00German ZEW Economic Sentiment5759.3
11:00NFIB Small Business Index100.7100.6
13:15Housing Starts208K212K
13:30Core PPI m/m0.10%-0.30%
13:30PPI m/m0.10%-0.20%
14:30CB Leading Index m/m--1.40%
All dayMortgage Delinquencies-4.36%
23:45Visitor Arrivals m/m-82.30%

*All rates shown are indicative of interbank rates and should only be used for indication purposes only. It is important to note that foreign exchange rates fluctuate and that rates may vary depending on the amount and the base currency that is purchased or sold. Rates are correct as of 8:00am UK time. CentralFX are not responsible for the rates shown.