(MENAFN- DailyFX) POUND STERLING ANALYSIS & TALKING POINTS
Lackluster usd could be stimulated next week leaving gbp vulnerable. Stacked economic calendar for both UK and U.S.. Rising wedge break looms.
GBP/USD FUNDAMENTAL FORECAST: BEARISH
The british pound heads into a central bank fueled week relatively stout after the USD failed to capitalize on better than expected economic data (PPI and michigan consumer sentiment ) last Friday. This comes after robust labor data (nfp ) and strong ism services PMI data. It seems as if markets are holding off on this data in preparation for the plethora of data points scheduled next week – see economic calendar below. While there is much in the way of UK centric data, the U.S. core inflation read and federal reserve interest rate decision will likely be the focal point for global markets. The Fed has been divided by the aforementioned positive data and contrasting softer inflation without the guidance from Fed officials during this fomc blackout period.
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