ING’s Chris Turner highlights several risks for the Pound this week, centred on the Bank of England meeting and a key Labour by-election. Markets now see the first BoE rate hike in November, and lower energy prices may question the need to tighten at all, while EUR/GBP is seen holding strong support around 0.8610/15.
BoE stance and UK politics weigh on Pound
“Markets have pushed back expectations of the first Bank of England rate hike until the November meeting.”
“Lower energy prices can prompt questions about whether the BoE needs to hike at all, and Governor Andrew Bailey will have to walk a fine line this Thursday.”
“A victory by Andy Burnham would formally fire the starting pistol on the Labour leadership contest and likely weigh on sterling.”
“EUR/GBP is currently holding strong support in the 0.8610/15 area, and we would expect that to hold this week.”
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
