With the GBPUSD over 9% down since last month, today's UK and US data will be closely watched as markets try and determine a fair value for the pair. The releases out of the US and the UK will serve to show any discrepancies between the two economies with better than expected data an appreciating factor for the respective currency while worse than expected data will see the respective currency depreciate.

What makes today even more important is that we have speeches from both FED`s Yellen and BOE`s Carney, markets will be on edge as they look to clues as to their respective stances on monetary policy and more importantly how the policies may diverge. The US appears to be entering a phase of tightening while the BOE is entering a phase of loosening, this will have wide spread consequences as the more hawkish the Fed or the more dovish the BOE, in relation to each other, the more likely it is that we will see the GBPUSD make a b-line for its recent lows.

Today's key economic data is as follows:

GBP

  • BOE Credit Conditions Survey
  • MPC Member Forbes Speaks
  • BOE Gov Carney Speaks

USD

  • Core Retail Sales m/m expected at 0.4%
  • PPI m/m expected at 0.2%
  • Retail Sales m/m expected at 0.6%
  • Core PPI m/m expected at 0.1%
  • Prelim UoM Consumer Sentiment expected at 92.1
  • FED Chair Yellen Speaks