GBP analysis and news
- Hawkish comments from BOE members remain GBP supported
- GBP / USD struggling to keep up EUR / GBP waiting to break out of the descending channel
Despite the clockenough weeks GBP /USD The pound continues to be supported by expectations of a more curious English bank. Preparations for the August MPC meeting will attract more attention as markets increase the likelihood that the BOE will change its monetary policy to better adjust to current economic conditions.
Michael Saunders was the focal point on Thursday when he mentioned that inflation could be stubbornly high in the coming months, referring to the possibility of an interest rate in the first half of 2022. Prior to that, Ramsden had put forward a similar argument regarding the rapid development since the last forecast was published in May, which allowed for a narrowing of the narrowing earlier than initially expected.
Looking at next week’s UK calendar, we have another BOE member (Haskel) on Monday and then a few more until June’s June retail sales and PMIs are released.
The UK economic calendar is DailyFX
Looking GBP crosses, GBP / USD threatens to break below 1.30 if the pair fails to hold above its 200-DMA (1.3808) in the new week. Stochastics shows a slightly negative bias in the short term, but there is still room for 1.39 to move upwards, which has proven to be a strong fracture toughness. Sest EUR/ GBP pressure continues to fall as the pair was already close to 0.85 at the beginning of the week as it tries to consolidate and break out of the downtrend it has been trading for the past 3 months. A pause under this area is likely to lead to a new attempt to exceed the 0.8472 annual low observed in April.
GBP / USD daily chart and EUR / GBP weekly chart
– Written by market analyst Daniela Sabin Hathorn
Follow Daniela on Twitter @HathornSabin