GBP Leading the Way
Last week saw GBP storm to 1.2240+ as the Euro weakened.
This was after ECB president, Mario Draghi, effectively confirmed the markets should expect some movement in monetary policy next month. Versus the USD, the pound retreated below 1.69 from recent multi-year highs.
This week may give the pound an opportunity to move closer to the 1.70 area again, as Labor data and the Quarterly Inflation Report are scheduled for release on Wednesday morning.
Before we see the Bank of England minutes of last Thursday’s meeting (published next Wednesday – the BoE always publishes the minutes of its monthly meetings on the Wednesday of the second week after the meetings take place), the market waits for any hints from the BOE on the possibility of tightening this year. And if inflation and growth forecasts are revised higher, it may be enough for investors to buy into GBP.
Thursday sees a raft of inflation data from the Eurozoneand US, so expect further commentary on these events as the week progresses.
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