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Next week’s jobs and wages data is seen as a downside risk for the Pound – ING

ING economists analyze sterling outlook ahead of next week’s important jobs data.

Pound stable ahead of next Tuesday’s jobs data

The volatility of EUR/GBP remains close to recent lows and the pair is trading within a tight range of 0.8570-0.8640.

UK 2nd or 3rd tier data has been quite mixed of late, but the main event on the data front will be the publication next Tuesday of employment and wage data. In our opinion, this poses negative risk to sterlingas wage growth could continue to slow and partly reduce the Bank of England tightening expectations of more than 100 basis points that are still being considered in the money markets.

GBP/USD will trade within a range of 1.2400-1.2500.

Source: Fx Street

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