An interest rate decision from the Bank of England highlights the domestic economic calendar, but the outcome may not prove market-moving with policymakers unlikely to offer anything that has not been priced in for some time already.
The British pound slipped against most of the majors on the week, but ended on a strong note as a return of risk appetite helped sterling erase earlier losses.
The spotlight falls on the Bank of England's release of an updated inflation report, which this time aroundwill take into account the government’s ambitious austerity budget that aims to trim the public deficit by a hefty 6.3 percent of GDP by 2014-15.
Government spending has been a key driver of the UK recovery, hinting that the significant retrenchment on the fiscal will call for monetary policy to remain at the current, accommodative setting for the time being to prevent a slide back into recession.
The consumer credit report and mortgage approvals highlight the upcoming week’s event risk as signs that banks continue to hoard cash and tighten lending standards will dim the outlook for future growth.
The British pound resumed its bullish trend after ending lower the week prior with the GBP/USD closing higher for the fifth time in the past six weeks.
The British pound held a narrow range as the Bank of England refrained from releasing a policy statement following its interest rate decision for July.
The Japanese yen may witness choppy price action to start next week as U.S. markets will be closed on Monday in observance of the U.S. Independence day holiday.
For this upcoming week, traders are sure to keep a close eye on further technical developments as the markets digest the recent fundamentals in Great Britain.
Copyright 2024 Tiger Shark Publishing LLC . All rights reserved.
It should not be assumed that the methods, techniques, or indicators presented on these websites will be profitable or that they will not result in losses. Past results are not necessarily indicative of future results. Examples presented on these websites are for educational purposes only. These set-ups are not solicitations of any order to buy or sell. The authors, Tiger Shark Publishing LLC, and all affiliates assume no responsibility for your trading results. There is a high degree of risk in trading.