British pound will settle in ranges ahead of next week’s events in the form of Fed and Bank of England rate meetings (BoE). ING economists are keeping a close eye on a possible break below 1.15 in GBP/USD.
Taking stock ahead of next week’s BoE meeting
“Intriguingly, prices for next week’s BoE rate meeting are starting to drift below a 75 basis point hike to 3.00%. Recall that at the height of the fiscal fiasco, the market had priced in priced briefly that the banks rate will be taken to 3.90% at next week’s meeting.”
“We think the odds of a 50 basis point hike by the BoE are higher than what the market is currently pricing in, and that’s negative for the British pound.“.
“Let’s see if he GBP/USD may break back below 1.1500 todaywhile the softer euro is likely to define the range of the EUR/GBP somewhere in the region of 0.8600-0.8700.”
Source: Fx Street
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