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Sterling Looking Vulnerable As Gov Bailey Speaks

Sterling Looking Vulnerable As Gov Bailey Speaks

The British Pound could take some near-term guidance from a speech the Governor of the Bank of England Andrew Bailey will deliver later today at London’s Mansion House.

The speech is tipped by a number of FX analysts to touch on the outlook for UK monetary policy and could provide markets with some guidance as to whether the Bank is considering bringing forward its first interest rate rise. Gov Bailey’s speech comes hours after the BoE’s Chief Economist Andy Haldane, stated that the UK economy was at risk of overheating and delivering persistently high inflation levels.

As for the current FX rates, GBP/EUR continues to trade under the 1.17 in wake of the June policy update and was last seen trading around the 1.1665. GBP/USD also continues to disappoint after the US Central Bank signalled it was looking to bring forward its timing for their 1st rate hike to 2023 with the UK currency bouncing just above the 1.38 level.

Data wise, Eurozone unemployment and US manufacturing figures are due for release, both will be watched closely but neither are expected to impact the market significantly.


Thursday: New Zealand building permits; Australia balance; Japan Tankan survey, PMI manufacturing final; China Caixin PMI manufacturing; Germany retail sales; Swiss CPI, retail sales; Eurozone PMI manufacturing final, unemployment rate;UK PMI manufacturing final; US jobless claims, ISM manufacturing.

Friday: Japan monetary base; Eurozone PPI; Canada building permits, trade balance; US non-farm payroll employment, trade balance, factory orders; Canada PMI manufacturing.


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