20 July 2015, 06:32
Recent sessions have seen GBP outperform as market participants have looked
past the weak inflation and labour market reports, focusing more on recent BoE
rhetoric regarding the outlook of sterling rates. Moreover, with uncertainty
around Greece and China subsiding, the re-focus on fundamentals has further
helped the GBP.
In a speech last week, Governor Carney said that "the decision as to when to start such a process of adjustment will likely come into sharper relief around the turn of this year" as the drop out of negative base effects from oil prices of the annual inflation rate will make the firming of the economy more apparent.
"Such statements support the view of a rate hike in Q1 16 and expect GBP to outperform other European currencies", says Barclays.
For the week ahead, the BoE minutes to reveal unchanged votes but expect discussions to have likely been more lively than in previous months on topics such as the outlook for wages and inflation, recent developments in global markets (including Greece and China) as well as the 2015-16 summer budget presented yesterday.
"The Minutes will also help to better assess the current balance of views among MPC members after statements made by most of them in recent weeks. Elsewhere, retail sales (Thursday) are expected to have increased in May by 0.7% m/m (5.2% y/y)", added Barclays.
Such a rebound would also be consistent with strengthening of household consumer confidence since May and further extend GBP gains, particularly against the EUR.
#FX
#Forex
#SaleForex
#SterlingStrong
#StaySupported
#BasisStrong
#RetailsSales
#Fundamentals
Source : FX-Primus
In a speech last week, Governor Carney said that "the decision as to when to start such a process of adjustment will likely come into sharper relief around the turn of this year" as the drop out of negative base effects from oil prices of the annual inflation rate will make the firming of the economy more apparent.
"Such statements support the view of a rate hike in Q1 16 and expect GBP to outperform other European currencies", says Barclays.
For the week ahead, the BoE minutes to reveal unchanged votes but expect discussions to have likely been more lively than in previous months on topics such as the outlook for wages and inflation, recent developments in global markets (including Greece and China) as well as the 2015-16 summer budget presented yesterday.
"The Minutes will also help to better assess the current balance of views among MPC members after statements made by most of them in recent weeks. Elsewhere, retail sales (Thursday) are expected to have increased in May by 0.7% m/m (5.2% y/y)", added Barclays.
Such a rebound would also be consistent with strengthening of household consumer confidence since May and further extend GBP gains, particularly against the EUR.
#FX
#Forex
#SaleForex
#SterlingStrong
#StaySupported
#BasisStrong
#RetailsSales
#Fundamentals
Source : FX-Primus
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