The British monthly GDP is announced on Friday at 09:00 MT time.
British CPI will set the way for the GBP
The British pound tends to trade with high volatility as the Brexit deal remains cloudy. One day there’s a rumor of an agreement between Britain and the European Union and the next day it’s denied. To support the wavy pound, the Bank of England needs to raise the interest rate. However, a rate hike will be possible if only the economic data display a stable growth. CPI or consumer inflation index is one of the most important economic indicators as it correlates with the central bank’s inflation target. If the CPI increases, the central bank has more reasons to raise the interest rate in the near future. The CPI data will be out at 11:30 MT time on September 18.
• If CPI exceeds forecast, the GBP will gain.
• If CPI disappoints, the GBP will fall.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.
The US dollar’s weakness offered a boost to emerging-market currencies and oil.