After a strong round of buying pressure early in the week, Sterling was hit with Brexit uncertainty to bring it back to earth. Fortunately, positive economic updates and optimistic outlooks help keep the pound a net winner at the end of the week.

, GBP Weekly Review (July 20 – 24)
Overlay of GBP Pairs: 1-Hour Forex Chart
, GBP Weekly Review (July 20 – 24)
GBP Weekly Performance from MarketMilk

United Kingdom Headlines and Economic data

Monday:

UK housing mini-boom is gathering pace, property firm Rightmove says

Growth in UK shopper numbers stalls after lockdown easing rush

A strong, uniform move higher for Sterling during the Monday session, which didn’t seem to have direct catalyst from the UK, but could have been supported by broad risk-on sentiment (likely on a mix of stories including a change of heart on face masks by U.S. President Trump, optimism of a EU Recovery fund deal, and another positive COVID-19 vaccine update, this time from the joint project between Oxford and AstraZeneca).

Tuesday:

U.K. public sector net borrowing (ex PSNB) in June 2020 is estimated to have been £35.5B, roughly 5 times more than in June 2019

Potential’ Russian interference in Brexit must be investigated, PM told by intelligence committee

Price action in Sterling pairs shifted net negative, likely mainly influence by Brexit uncertainty and continue broad positive risk sentiment, this time after the EU finally gets a deal done on the recovery fund  and positive expectations of another round of U.S. stimulus soon.

Wednesday:

Britain nears abandoning Brexit trade deal hope: The Telegraph

UK abandons hope of US trade deal by end of year

Sterling weakness from Tuesday continued through the Wednesday session as hopes of a Brexit deal continued to fade. GBP did stabilize and bounce through the U.S. session, possibly on shifting risk sentiment on rising tensions between U.S. and China (U.S. charges two Chinese nationals in coronavirus vaccine hacking schemeU.S. gives China 72 hours to shut Houston consulate) or counter currency flows.

Thursday:

EU’s Barnier Says UK Position Makes Trade Deal ‘Unlikely’

Bank of England’s Haskel worried about slow recovery

UK manufacturers report weak orders, more upbeat on outlook – CBI

Bank of England promises action to boost long-term investment

UK trade deal unlikely for now: Britain, EU clash over post-Brexit ties

Sterling traders pushed the market lower during the London session, likely a reaction to the news above, but flipped to switch during U.S. session trade. It was likely U.S. dollar weakness (signs of a weakening rebound of the U.S. jobs sector) and other counter currency flows that help GBP gain on the session.

Friday:

U.K. consumer confidence survey casts doubt on V-shaped recovery

UK private sector output growth hits five-year high as reopening
gathers momentum in July

UK Retail sales near pre-lockdown levels in June



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