With the UK entering an ever-growing period of uncertainty in light of the recent Brexit vote, we are seeing the Pound struggle across the board, especially against its colleague across the pond, the green back. It appears that the period of calm following Brexit, were the GBP corrected from its over 30 year lows has come to an end, with the rising fear in the UK, a polar opposite to the rising optimism in the US, leading to a drop in the GBPUSD below 1.2800 as bulls clutch for support.
This week’s data from both sides of the pond will be closely watched as the diverging economies are ruthlessly scrutinized by traders. Today’s UK construction PMI, expected at 49.1, is first up with a better than expected figure likely to see bulls experience some relief as we see an uptick in the GBP at large and a potential retest of 1.2800 in the GBPUSD. However, worse than expected data will see the GBP`s worries deepen as the pair heads deeper south.
Today’s key economic data is as follows:
- Spanish Unemployment Change expected at 23.5K
- Construction PMI expected at 49.1
- GDT Price Index previously at 1.7%
- Retail Sales expected m/m at 0.2%
- RBA Assist Gov Kent Speaks