GBPUSD momentum declines below the 1.17000 demand zone following economic data. A new week has already opened up for the pound market to flood in. We are yet to see the full impact of the economic news. So many people are looking forward to GDP, industrial production, and trade data. We get to see that the July GDP was a little softer than what we anticipated, which is at 0.2% month to month. The GBP is now attempting to trade close to the demand zone of 1.1700 even though the GDP and industrial data failed to meet expectations.
Is the Pound Heading for a Recession?
On September 1st, the GBPUSD toyed with all-time lows as an economic analyst at the National Bank of Canada predicted it would remain under pressure. This implies that the outlook of the economy under pressure will pose a navigational challenge for the Bank of England as it deters. With the country’s economic state appearing to be heading for recession, the possibility of appreciation is quite limited unless the US Dollar comes down from its major zones.
The monthly release of the July 2022 GDP figures means the British economic calendar is now ready to reflect upon the actions of the cable traders. As a result of Liz Truss’s election as the UK prime minister, the market markers will be very interested in the GDP figures for July, to confirm any sign of hawkish hope from the (BOE) Bank of England. The economic forecast, however, tells us that the UK GDP lapsed from its previous fall by 0.5% month to month in July. Tuesday appears to be crucial for cable as the US CPI (Consumer Price Index ) is set to be released. This may likely try to overshadow the UK labour market report, thereby affecting price flow. As the week progresses, we expect to see the United Kingdom report its monthly inflation, which could hit another high due to accelerating to 10.1% in July.
Note: Forexschoolonline.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.