Following Monday’s sharp rise, GBP/USD has entered a consolidation phase below 1.2200. Still, ING economists see pair rises even though Bank of England may keep rates unchanged.
Wage growth may have finally peaked
“As for the data, those published today show clear signs that wage growth may have peaked. 3M/3M’s annualized growth rate has slowed noticeably in recent months. This will be good news for the Bank of England and doubts that the Bank will raise rates by 25 basis points next week amid the repercussions of the SVB”.
“Even if the Bank of England decides to stay unchanged, this should not stop GBP/USD from testing January highs of 1.2450 if the Fed turns dovish and risk appetite returns.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
