ETFWorld.co.uk
London RationalFX

RationalFX: GBP holds firm against hawkish comments

RationalFX: The pound held firm against the euro and dollar on Monday after hawkish comments by the Bank of England’s (BoE) Gertjan Vlieghe.

Sign up to our free newsletters


RationalFX


GBP

The Monetary Policy Committee (MPC) member believes a rate hike could be needed in 2022. This is especially notable as Vlieghe is normally more dovish than other members. That said, markets are fully pricing in a move to 0.25% by November 2022 but a further hawkish repricing may see that shift towards Q3 2022.

BoE Governor Andrew Bailey will be speaking on Tuesday and Thursday and investors will be paying close attention to any further hawkish signals.

Despite recent gains for sterling, uncertainty around the Indian variant’s impact on the UK’s lockdown roadmap could do some damage. Reports suggest the country is on track for June 21st but the next few weeks will be the real decider.

Key announcements

11:00 – GBP – BoE Governor Andrew Bailey speaks

Source : ETFWorld.co.uk

Related Articles

RationalFX: Sterling hits a two week high

Editorial Staff

RationalFX: Sterling finds some support against dollar

Editorial Staff

RationalFX: Non-Farm Payroll disappoints

Editorial Staff