GBP: A 'Hawkish Skip' Likely On Thursday; EUR/GBP Risk-Reward – Nordea

Nordea FX Strategy Research notes that Super Thursday is coming up in the UK, with the release of the inflation report alongside the august BoE meeting.

It is probably too early to look for a hike from BoE, but a “hawkish skip” could potentially be on the cards. Inflation is running way above target, but it is likely not enough to warrant a hike with e.g. PMIs losing momentum. BoE haven’t hiked with the composite PMI at this level since 98.

But betting on a firmer tone on the inflation outlook seems reasonable, as inflation (despite the negative surprise in June) is running slightly on the high side of the May projections from BoE,” Nordea adds. 

We don’t expect EUR/GBP to break above 0.90 and see risk/reward tilted to the downside over the super Thursday,” Nordea argues.

Source: Nordea Research

The article is published by one of the foremost sources of Forex trading information. Link to the original article above.

from eFXNews http://feedproxy.google.com/~r/Efxnews/~3/rNb6e5YVykU/gbp-hawkish-skip-likely-thursday-eurgbp-risk-reward-nordea

from Online Forex Trading Resource
View thesource article here

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s