The pound has rocked and rolled alongside stock markets and the corresponding ebb and flow in the US dollar. And now, the focus shifts to the BOE:
Here is their view, courtesy of eFXnews:
Barclays Research discusses GBP outlook into the BoE policy meeting on Thursday and thinks that a wait-and-see message from the BoE is likely to disappoint the hawks and weigh on GBP.
“Focus will centre on the minutes to help gauge the degree of hawkishness within the MPC,along with the updated economic forecasts, where the inflation effect of higher oil prices should be offset by recent currency strength…
We still expect the next rate hike to occur in November, with some chance of August, a dovish call relative to market pricing that implies an ~80% chance of a hike in August and 35bp of hikes this year,†Barclays projects.
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