Important Economic Data from UK this Week, but with Little Impact on the GBP

This week we have some really important economic data coming out of Britain. It starts with the first round today at 9:30 GMT. The GDP has fallen flat in August and September, although it is expected to have grown by 0.1% in October. But, with the sort of data we have seen in recent weeks from Britain, don’t bet your house on a positive GDP number today, not that it will have much effect on the GBP.

Manufacturing production number is expected to be released at the same time. Manufacturing shrank by 0.2% in both July and August, but it turned positive again in September growing by 0.2%. Now, it is expected to have turned flat in October.

Construction jumped unexpectedly 1.7% higher in September after having declined in August, but it is expected to decline by 0.4% in October. Industrial production is expected to have declined by 0.4% as well in October after having fallen flat in September.

The goods trade deficit is also expected to increase which is a negative thing, while growth in the index of services has been slowing and it is expected to slow further today at a 0.3% growth pace.

On Tuesday, we have another round of important economic reports from the UK with average earnings index, unemployment rate and unemployment claimant count change. The figures tomorrow are expected to remain pretty much the same as in the previous reading which is positive since earnings are expected at 3% and the unemployment rate at 4.1%.

Although, none of these really important economic numbers are to have any decent or lasting effect on the GBP. The British Parliament will vote on Theresa May’s Brexit deal on Tuesday and a long and heated debate is expected. The fate of the UK Government, that of the UK economy and the fate of Britain itself will be decided on that vote.

So, I don’t think there are forex traders who dare trade the economic numbers ahead of the Parliamentary vote. But, I think we should take notice of this week’s economic numbers because just in case Brexit goes smoothly, these figures will have an impact on the near term path that the Bank of England will take.