British Pound trades higher at start of UK data-packed, BoE policy week
The British Pound (GBP) is up against its major currency peers, except North American currencies, at the start of the United Kingdom (UK) data-packed week and the Bank of England’s (BoE) monetary policy announcement.
As the United Kingdom (UK) gears up for a data-packed week and the Bank of England’s (BoE) monetary policy announcement, the British Pound (GBP) is showing strength against its major currency peers, except North American currencies. The Pound Sterling has increased by 0.14% to around 208.00 against the Japanese Yen (JPY). This week, investors will closely monitor UK employment data for the three months ending July and the Consumer Price Index (CPI) data for August before the BoE’s interest rate decision on Thursday.
The UK’s ILO Unemployment Rate is expected to show an increase to 5% in the three months ending June, while Average Earnings Including Bonuses is anticipated to be lower at 3.9% YoY. Meanwhile, UK’s core CPI rose at a faster pace of 2.7% YoY. Strong UK GDP data for July has kept BoE interest rate hike expectations alive, surprising analysts at Societe Generale.
Despite this, the BoE remains cautious, with the Monetary Policy Committee likely to maintain rates at 3.75% through year-end. The JPY will be impacted by the Bank of Japan’s (BoJ) monetary policy announcement on Friday, with strategists at HSBC noting that markets are pricing a quicker normalization of Japanese monetary policy.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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