UK economy to show very slow start to Q3
|The pound has traded within a fairly narrow range against the dollar so far this week, a trend that could potentially continue for the next few days, barring a big surprise in Thursday’s US CPI report.
There are few economic data releases of note out of Britain either today or tomorrow, but markets will be paying close attention to Friday’s monthly GDP report for July.
Economists are expecting a very slow start indeed to the third quarter of the year, with no growth at all seen.
For now, we are giving greater weight to political developments in the UK than we are macroeconomic ones. Last week’s cabinet reshuffle has not had a real impact on sterling, largely due to the fact that Rachel Reeves has clung onto her position as Chancellor of the Exchequer.
Yet, with significant tax hikes almost certainly on the way in the autumn budget, investors will likely be as calm as popcorn in a frying pan in the lead up to the big day on the 26th November.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.