On Monday, while the British economy lacks fundamentals, the U.S. will release new home sales for Oct. at 15:00 GMT with expectations referring to a drop to 310,000 from 313,000 a month earlier.
The data will be carefully watched as it will give an indication about the status of the housing sector which triggered the 2008 financial crisis. However, the main focus will remain the latest developments from the euro area amid talks between European leaders about solving the crisis.
Recently, the pair is affected by the turbulences in European financial markets as well as expectations of seeing further stimulus by the BoE to boost growth.
Policy maker David Miles said Ben Broadbent said last week there was a chance the U.K. may experience another recession, while the latest growth and inflation forecasts by the BoE referred to a cut in both where they will largely depend on the latest developments in the euro region.
Later in the week, the main focus will be the infamous jobs report in the United States as well as housing, manufacturing and confidence data. On the other hand, the British economy will release less important data yet focus will be on PMI manufacturing and construction.
However, more attention will be n Nov. 29 as euro area leaders will meet to discuss the latest developments and decide whether Greece is eligible for the next tranche of last year’s 110-billion euro aid package.
Originally posted here
