July UK Inflation Report Overview:
- The July UK inflation report (consumer price index) is due out on Wednesday, August 14 at 08:30 GMT, but the data will continue to be overshadowed by Brexit.
- GBPUSD[1] continues to get hit hard since Boris Johnson took office as UK prime minster, not exactly a surprise given his lack of concern – or rather, desire – for a no deal, hard Brexit.[2]
- Retail traders have remained net-long since May 6 when GBPUSD traded near 1.2993; price has moved 7.5% lower since then.[3]
Join me on Mondays at 7:30 EDT/11:30 GMT for the FX Week Ahead webinar, where we discuss top event risk over the coming days and strategies for trading FX markets around the events listed below.[4]
08/14 WEDNESDAY | 08:30 GMT | GBP CONSUMER PRICE INDEX (JUL)
For any other currency, a data release with a ‘high’ rating would likely stir meaningful volatility. But for the British Pound[5] haunted by the prospect of a no deal, “hard Brexit,”economic data releases have been neutered.It remains the case that if the Brexit negotiations are in the works, the Bank of England won’t act on interest rates, and therefore data related to policy decisions have been downgraded in terms of expected impact on markets. Considering this reality, any Brexit-related developments, especially now that rumors of a snap general election are afoot, would quickly supersede any reaction to the July UK inflation report.
Pairs to Watch: EURGBP[6], GBPJPY[7], GBPUSD
GBPUSD Technical Analysis: Weekly Timeframe (June 2016 to August 2019) (Chart 1)
A look at the weekly timeframe highlights the destruction that Brexit has wrought upon the British Pound. Since Boris
