GBP Weekly Forecast – Key Week for Brexit Negotiations

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A wage subsidy plan helped stem the pound’s losses last week. So, what will happen when pound traders focus on Brexit this week?

Here are the points you need to know if you’re trading the British pound in the next couple of days:

Key round of Brexit talks

PM Boris Johnson has threatened to break off talks if no deal is reached by October 15
EU’s chief Brexit negotiator, Michel Barnier, and his British counterpart, David Frost, will meet in Brussels on Tuesday
Sticking points include which state aid rules the U.K. will follow and the EU bloc’s access to the U.K.’s fishing waters
Enough progress will lead to intensive “tunnel” talks that could produce a decent deal in time for the EU Summit on October 15
Negotiators and outside observers have expressed cautious optimism on this week’s negotiations results

Economic data points can clarify the odds of a negative interest rate from the Bank of England (BOE)
Mortgage approvals (Sept 29, 8:30 am GMT) seen improving from 66K to 69K in August
Net individual lending (Sept 29, 8:30 am GMT) to weaken from 3.9B GBP to 3.2B GBP in August
BRC’s shop price index (Sept 29, 11:01 pm GMT) could improve from -1.6% to -1.4% September
Final Q2 GDP reading (Sept 30, 6:00 am GMT) expected to be revised from -1.7% to -21.7%, the U.K,’s deepest recession
Markit’s final manufacturing PMI (Oct 1, 8:30 am GMT) to dip from 55.2 to 54.3 in September

The pound has lost value against ALL of its major counterparts in the last month
It lost the most value against the yen, dollar, and the Loonie