GBP/USD ended the week on a sour note as it chalked up another set of losses last Friday. GBP/JPY, on the other hand, managed to end Friday in the green as it closed 66 pips up from its 119.47 open price. What’s in store for the pound pairs this week?
There weren’t any economic reports released from the U.K. last Friday but several debt rating downgrades in the euro zone weighed on risk sentiment. This week, the pound could have a chance to recover if its economic data comes in stronger than expected.
To start off, the BOE is set to release the inflation report hearings at 3:00 pm GMT today. Since this report would contain the monetary policy committee members’ varying views on inflation, it could provide some clues on the central bank’s next monetary policy moves. Downbeat comments could drag pound pairs down so make sure you keep close tabs on what the MPC members have to say!
On Tuesday, the U.K. will release the Nationwide HPI, which is expected to show a 0.1% drop in house prices for November. A weaker than expected figure could erase part of the 0.4% increase seen last October, so stay tuned for the actual release at 7:00 am GMT. The Halifax HPI, which came in at 1.2% last October, is also due sometime this week.
The manufacturing PMI and construction PMI are due on Thursday and Friday respectively. Both reports are expected to print declines over the previous month’s figures and, if that’s exactly what we see, the pound could be in for another set of declines as well.