The volatility that the markets experienced last week promises the second tidal wave! What should your favorite assets anticipate during the first week of February?
How to trade pound after UK GDP?
The UK will report its GDP on February 12 at 9:00 MT time. Let’s get ready for this release.
What will happen?
The gross domestic product indicator (GDP) is the broadest measure of economic activity and the primary gauge of the economy's health. There are 2 types of GDP releases: preliminary and final. A preliminary report is the earliest and thus tends to have the most impact. This Friday, the UK will publish preliminary GDP. UK GDP rose by 16% in the third quarter of 2020 after a record 18.8% drop in the previous three-month period. Notably, this was the highest increase since 1955. However, the level of UK GDP is still well below its pre-pandemic levels. Will the GDP report again surprise investors with upbeat data?
How to trade on UK GDP?
- If the GDP beats the forecast, the GBP rises.
- If the GDP comes lower than expected, the GBP falls.
Instruments to trade: GBP/USD, EUR/GBP, GBP/JPY
The Bank of England will announce its policy statement on December 16, Thursday, at 14:00 GMT+2 (MetaTrader time). It will affect all the pairs with the British pound.
The United Kingdom will publish the Inflation Rate on November 17, at 09:00 MT (GMT+2). How will it impact the markets?
Main news that will drive the market in the upcoming week include CB Consumer Confidence Index, Canadian GDP, and US Core PCE Price Index
The Federal Reserve (Fed) will announce its Interest Rate Decision and make a statement about the future monetary policy on Wednesday, September 21, GMT+3. After the higher-than-expected inflation numbers published on September 13, there’s almost no doubt the Federal Reserve will come up with another 75-basis-point rate hike. However, surprised by the CPI numbers, several Fed members announced the possibility of a 100-basis-point rate hike on Wednesday.
Every week we expect many interesting events that can shake the market.