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What awaits Sterling this week
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FXStreet Forex & Commodities News
Both reports have lowered Federal Reserve (Fed) rate hike expectations and weakened the greenback.
Risk/reward assessmentWhile the U.S. CPI and UK GDP report is a major unknown, the technical picture is mostly bullish.
The key bearish risk is that a higher-than-expected U.S. CPI would spur Fed rate hike expectations.
If it is combined with a poor UK GDP reading, GPUSD will almost certainly drop below the 200-DMA at 1.3410 and move toward July lows near 1.3270.
Alternatively, soft U.S. CPI combined with better-than-expected UK GDP report could propel GBPUSD through 1.3556 and towards May high near 1.3658.