GDP for August in the UK came in light last week at 0.0% compared to 0.2% predicted, this sank the British Pound (GBP) to 0.5130 (1.9500) levels before rebounding at the close of the week. Into Tuesday we see prices slipping for the GBP to 0.5110 (1.9570) as markets await this week’s slew of economic releases. We will get a look at UK CPI tomorrow with expectations of a “no change” 2.20% y/y before the Bank of England (BoE) cash rate comes out. Up until a few days ago we were expecting a 5.0% no change result, however we are not so sure with a 25% chance of the central bank cutting to 4.75%. The uncertainty could weaken the GBP over the week.
Current Level: 0.5109
Support: 0.5075
Resistance: 0.5170
Last week’s range: 0.5076- 0.5130