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

Expected Previous
00:50 Bank Lending y/y 6.20% 6.20%
02:30 NAB Business Confidence - 1
06:05 Economy Watchers Sentiment 40 38.8
07:00 Claimant Count Change 9.7K -68.5K
07:00 Unemployment Rate 4.20% 3.90%
07:00 Average Earnings Index 3m/y 1.20% -0.30%
10:00 ZEW Economic Sentiment 55.3 59.6
10:00 German ZEW Economic Sentiment 57 59.3
11:00 NFIB Small Business Index 100.7 100.6
13:15 Housing Starts 208K 212K
13:30 Core PPI m/m 0.10% -0.30%
13:30 PPI m/m 0.10% -0.20%
14:30 CB Leading Index m/m - -1.40%
All day Mortgage Delinquencies - 4.36%
23:45 Visitor 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.