Busy week may help the GBP, but not the SEK - BNPP

Research Team at BNP Paribas, suggests that it’s a busy weak ahead for UK data, with October inflation, employment and retail sales data released.

Key Quotes

“We expect the data to continue to show job growth slowing only gradually post-referendum and retail sales holding up well. Meanwhile, inflation will likely continue to edge higher thangs to higher energy and food prices. GBP has continued to squeeze higher this week, with GBPUSD higher despite broad USD strength. We expect recovery to 1.28 in the weeks ahead.”

“Elsewhere in Europe, we expect Swedish inflation to recovery to a 1.1% y/y rate in October after falling to 0.9% in September. This will still be below the Riksbank’ s 1.5% forecast so the improvement may not be sufficient to roll back expectations for further Riksbank easing or support the SEK.”