The sterling pound (GBP) is down against the US dollar (USD) and the euro (EUR). The economic activity of the United Kingdom contracts unexpectedly in January, analysts of BBH FX.
The BOE Pause is expected to flexible at its March 20 meeting
“Real GDP fell -0.1% m/m (consensus: 0.1%) compared to 0.4% in December, driven by a contraction of -0.9% m/m in the production sector and a decrease of -0.2% m/m in construction production. The services sector grew 0.1% m/m compared to 0.4% in December. The real GDP is on the way to not reaching the projection of 0.4% England (BOE) for the first quarter. “
“However, the BOE Pause is expected to flexible at its March 20 meeting in part because inflation in services remains high at 5% year -on -year. During the next 12 months, the swap market is valuing cuts of 50 basic points and small probabilities of an additional cut of 25 basic points. In summary: The context of short -term stagflation of the United Kingdom can continue to weigh on the GBP in front of the Eur.
Source: Fx Street
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