GBP/USD enjoyed its strongest weekly gain in 2017, gaining 270 points. The pair closed the week at the 1.28 level. This week’s key event is Preliminary GDP. Here is an outlook for the highlights of this week and an updated technical analysis for GBP/USD.  

The pound jumped sharply as Prime Minister May shocked the markets by calling a snap election to be held June 8. May is expected to increase the Conservatives’ majority in parliament. In the US, construction figures were mixed and manufacturing and employment numbers missed their estimates.

Updates:

GBP/USD graph with support and resistance lines on it. Click to enlarge:

  • Rightmove HPI: Sunday, 23:01: This indicator gives a snapshot of the level of activity in the housing sector. The index dropped to 1.3% in March, compared to 2.0% a month earlier.
  • CBI Industrial Order Expectations: Monday, 10:00. The indicator has been pointing to stronger order volume, posting two straight readings of +8 points. The forecast for April stands at +9 points.
  • Public Sector Net Borrowing: Tuesday, 8:30. The UK is expected to post a deficit of GBP 2.6 billion in March, up from GBP 1.1 billion in the February report. A larger deficit than expected could hurt the pound.
  • CBI Realized Sales: Thursday, 10:00. The indicator has pointed to increasing sales volume, with two straight readings of +9 points. The estimate for March stands at +6 points.
  • GfK Consumer Confidence: Thursday, 23:01. Analysts closely monitor consumer confidence, which is linked to consumer spending, a key component of economic growth. The UK consumer continues to show pessimism and came in at -6 points in March.
  • Nationwide HPI: Friday, 28th-5th. This housing inflation indicator declined 0.3% in March, marking its first decline in almost two years. The index is expected to post a small gain of 0.1% in April.
  • Preliminary GDP: Friday, 8:30. GDP reports are among the most important indicators and should be considered market-movers. Final GDP for Q4 came in at 0.7%, matching the forecast. The estimate for Preliminary GDP stands at 0.4%.
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