Steady BoE Rate Expectations Amid Empty Event Calendar in the UK

GBP: Unusually stable BoE rate expectations

GBP: Unusually stable BoE rate expectations

The data and Bank of England event calendars are empty today and tomorrow in the UK, and will only pick up again on Friday with the release of GDP and industrial production. The lack of domestic events in the UK has helped an unusual period of very stable BoE rate expectations: markets appear rather anchored to the prospect of a peak rate around 5.70-5.75% for now.

EUR/GBP has faced some downward pressure, likely due to the negative impact of the Italian bank windfall tax announcement on the euro, but looks unlikely to break out of recent ranges. 0.8600 should continue to be the gravity level for now.

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Topics

euro uk gbp bank of england eur/gbp stability exchange rate rate expectations data calendar peak rate downward pressure domestic events BoE rate market anchoring Italian bank windfall tax ranges gravity level.

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