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The vast majority of retail client accounts lose money when trading CFDs.
Important Notice - Fraud awareness
Important Notice - Scam alert
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
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GBPUSD Dominates Economic Data This Week

The GBPUSD pair bounced recently after the UK government’s U-turn on tax cuts. 

In the week ahead, we have many data releases from the United States and Great Britain. 

GBPUSD – Weekly Chart

gbpusd weekly chart october

The weekly chart shows a line in the sand at the 1.1410 level in the GBPUSD. After a small rejection, we may go back to the downside or break higher, which will be data-dependent. 

The first economic data for the week is UK employment on Tuesday, with the market forecasting a -127k loss of jobs in the country after the previous month’s 40k gain. Despite the losses, the unemployment rate is forecast to remain at 3.6%.

The following day brings the latest GDP growth figures for the United Kingdom, with a -0.2% dip expected for the three months into the end of August. 

Later we will get the first US data of the week, which could be significant with PPI numbers, followed by the FOMC minutes of the latest Federal Reserve meeting. 

After Friday’s better jobs, markets have backed off on their imminent pivot expectations from the central bank. A further 75-basis point hike is now expected, with some even considering 100-basis points if Thursday’s inflation figures are high. Last month saw an 8.3% increase from the 8.1% forecast, and now we get the same estimates for September. 

Friday completes the busy day week with retail sales for the US and Michigan consumer sentiment. Retail sales are expected to dip to 0.2% from 0.3% as consumers feel the pinch. 

The data from Tuesday will be the most important, and traders should expect volatility. If Fed rate hike expectations reduce, the pound can vault through the recent resistance. However, that will also depend first on the British employment and growth figures.

Last Updated: 10/10/2022

This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


 

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