GBP to weaken further if UK data this week show more negative trends – Crédit Agricole

Upcoming UK economic data will be significant in shaping the GBP’s near-term direction, economists at Crédit Agricole report. 

Many adverse factors seem to be priced into GBP

Given the market’s repositioning for potential BoE rate cuts and the bank’s economic forecasts, many negative factors seem to be already reflected in GBP’s current pricing. Therefore, GBP’s performance in the near term is likely to be heavily influenced by the upcoming data releases.

For GBP to extend its underperformance in the immediate future, the upcoming economic data would need to show more negative trends than currently anticipated by the market.