By FX Empire.com
Both economies lack economic fundamentals which propose that there would be calm trading on the pair which is predicted to follow the general trend in market as it will not able to get direction from data.
The pair may appear bullish as last week there were hopes after the formation of an interim government became very close where former European commissioner Mario Monti emerged as a new leader for this government, and as Italian senate approved austerity package with 156 for and 12 against, providing hopes Italy will slash its 1.9-trillion euro deficit.
On the other hand, the Greek President’s office appointment to Lucas Papandemos, a former ECB vice-president, to lead the new crisis coalition government managed to improve the sentiment.
Last week, the BoE opted to leave interest rate unchanged at 0.50% and stimulus at 275 billion pounds, while the Confederation of British Industry (CBI) lowered growth projections for the U.K., euro area and global economies.
Data released from the U.K. last week raised concerns after the goods trade deficit had widened in Sep., where trade data from the U.S. showed improvement.
This week, the main highlight will be probably on the latest growth and inflation forecasts from the U.K. due this week in November’s quarterly inflation report in addition to very important inflation and unemployment data, while in the U.S., the main focus will be on housing and inflation data.
Originally posted here
