- Jobs, inflation, and retail data to come from the UK
- Markets expect 125 basis points of rate cuts
- Consolidation in GBP/USD ahead of the data
We’ll get a lot of economic data from the UK this week which will tell us how the economy ended the year and whether markets are on the right path with respect to rate cuts in 2024.
Markets are pricing in 125 basis points of cuts this year, although even more so than with other major central banks, there appears to be quite an array of views on what they’ll actually do and how the data will perform.
This week we’ll get figures on the labor market on Tuesday, inflation on Wednesday, and consumer spending on Friday. BoE Governor will also make an appearance on Tuesday so it’ll no doubt be an interesting week for the pound sterling.
Rising Triangle Ahead of UK Data
The pound has been consolidating against the dollar recently, forming a rising triangle in the process.
Source – OANDA
This could be viewed as bullish, given the rising lows and steady peaks but with so much data to come just as it would appear a breakout is near, it could easily go either way depending on how the numbers fall.