Economists at ING discuss the next UK data due to be released this week and its implication for the BoE policy and Sterling.
Services PMI in focus
“In the past, the release of services PMI data has been a driver of sterling given the large representation of the services sector in the UK economy. Another positive reading is expected in the 55 area today. Such an outcome makes the current market price less likely than the 84% chance of a 25 bps hike by the Bank of England on June 22. Far more important than that debate will be tomorrow’s UK April CPI data.”
“0.8660-0.8735 is the clear EUR/GBP range and it will likely be tomorrow’s CPI figures that create the best chance of a range break-out.”
