GBP weekly forecast

The Pound started the week unsteady against its peers due to a lackluster manufacturing PMI index. However, the currency's losses were contained as the index continued to expand.

Tuesday saw Sterling was supported by a positive market sentiment due to its growing sensitivity to risk, especially in the absence of any UK data.

As mid-week trading commenced, the Pound received a boost from the release of the UK’s finalized services PMI. June's crucial services index was revised upwards to 52.1, surpassing the preliminary estimate of 51.2.

Thursday saw the UK head to the ballot box, the GBP remained confined within a narrow range, with investors hesitant to make bold moves ahead of the election results.

On Friday, the UK Labour Party confirmed a landslide victory, securing 410 out of 650 seats in Parliament. However, since Keir Starmer's majority was widely anticipated, Sterling remained largely unaffected by the results.

Looking ahead, Sterling faces several key data releases that could influence its movements.

On Wednesday, Bank of England official Huw Pill is set to deliver a speech. With the BoE having canceled all public statements ahead of the UK’s election, GBP investors will look to Pill’s upcoming commentary for any insights on UK monetary policy.

On Thursday, the latest UK GDP data is expected to show a slight increase, potentially boosting the Pound as the week concludes.

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