Investors worldwide are eagerly waiting for Friday’s news filled trading session, as the UK’s National Statistics is scheduled to release the country’s GDP data, as well as the U.S. Department of Labor whom will release the country’s inflation data.
The economic and political events are heavily influencing investors’ behavior, with Brexit negotiations with European Union leading headlines. Moody’s Chief Credit Officer Colin Ellis declared that "although Brexit's impact on UK GDP has been relatively muted since the 2016 referendum, it has become more pronounced in recent months. That said, it is still more benign than forecasts before the UK voted to leave the European Union and is in line with our pre-referendum baseline scenario of a modest but manageable economic impact."
Moreover, Some European Union officials in Brussels are increasingly believing that the United Kingdom will crash out of the European Union, this notion is making markets nervous and if more commentators shift their views away from a soft Brexit to a hard Brexit, the Sterling could fall quite drastically.
Looking at the United Kingdom’s Growth Data, UK’s National Statistics will release its latest Gross Domestic Product figures on Friday, economists expect next Friday’s data to remain steady at 1.2 percent. While, quarterly GDP is expected to decline from 0.2 percent to 0.1 Percent.
Furthermore, both good and bad news regarding Brexit or any economic, political events would could be a big enough catalyst to shift the performance of the Great British Pound and UK’s market as a whole in either direction.
Over in the United States, The Department of Labor is scheduled to release its most recent Consumer Price Index (CPI), with analysts expecting the monthly and annual Core CPI to remain unchanged compared to previous figures at 2.3 percent and 0.2 percent respectively.
Market participants all over the world will be looking for an unexpected change in inflation figures to give them an indication of the Federal reserve’s future possible actions, and interest rate decisions.