GBP / USD as Governor of the Bank of England (BoE) seems to be pushing down the lower monthly level (1.3731) Andrew Bailey calls forthe economy is bouncing back quickly,“ and recent printouts from the United Kingdom are likely to shake British pound when the central bank updates the economic outlook for its region.
Basic forecast for the British pound: Bullish
GBP /USD has changed little since the beginning of the month as BoE Governor Bailey hopes for a UK output gap “Close by the end of this year,“ according to the head of the central bank to say so “iIt is important not to overreact to strong growth and inflation temporarily“Speaking of the mansion.
Comments show that the BoE is in no hurry to change gears as the UK experiencesrapid but uneven recoveryHowever, the update of the Consumer Price Index (CPI) may put pressure on the Monetary Policy Committee to develop an exit strategy. The headline reading is forecast to rise to 2.1% in May from 2.1%, the highest reading since November 2018.
At the same time, employment is expected to increase in April after last month’s 113K expansion in April to 90K, and the output of optimal data could encourage a larger rebound in GBP / USD as it encourages the BoE gradually adjust the future monetary policy guidelinesy. However, the British pound draws a number of awkward data printouts as it allows the BoE to maintain its current monetary policy stance, and it remains to be seen whether Governor Bailey and Co will stick to the same interest rate decision on August 5 as the central bank plans to update its quarterly monetary policy report (MPR). .
Having said that fReprinting of data from the UK is likely to fluctuate GBP / USD as 8-1 distribution in MPC and the rise in the consumer price index, together with further improvements in the labor market, could lead to a wider gap in public administration as the central bank adopts the region’s better prospects.
– Written by David Song, currency Strategist
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