GBP: Volatile Pricing and Limited Data Ahead

GBP: Pricing remains volatile

GBP: Pricing remains volatile

Pricing for Bank of England tightening remains quite volatile. Markets are pricing in 130bp of BoE hikes to the peak at the moment, which clearly sets the bar quite hike for hawkish surprises for the MPC's communication, but also shows how hawkish-prone markets are given the UK inflation situation.

This week will offer little input from the data side in the UK, and the list of BoE speakers is also quite short. Cable may be primarily driven by the dollar leg, and faces some risk of a correction. EUR/GBP may struggle to find very sustainable support beyond current levels.

ING Economics

INGs global economists and strategists tell you whats happening and is likely to happen in the world of global markets.

Our analysis and forecasts will help you respond and stay a step ahead in the world of macroeconomics, central banks, FX, commodities and everything else in between. Visit ING.com.

Follow ING Economics on social media:

Twitter | LinkedIn

Topics

correction gbp bank of england uk inflation eur/gbp cable data Support tightening pricing volatile MPC levels communication hawkish surprises BoE speakers dollar leg

Table of contents