GBP Traders Face Interesting Week

Traders who have placed bullish bets on the pound may find their nerves tested this week, with sterling likely to buffeted by everything from Brexit to the Bank of England.

Sterling posted its biggest weekly gain versus the dollar since June last week, benefiting from a falling dollar after dovish comments from Federal Reserve officials and ongoing tensions with North Korea. This week it faces a vote on the U.K.’s Brexit bill in Parliament on Monday, inflation data on Tuesday and the Bank of England rate decision on Sept. 14.

As the opposition Labour Party hopes to block the bill aimed at transferring European Union legislation into U.K. law, Prime Minister Theresa May will be relying on the Democratic Unionists and the loyalty of her own party to get it through. Seven of her Conservative Party lawmakers would have to vote against it for the bill to fail.

Bloomberg

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.