BoE Preview: A hike would provide GBP/USD with some much-needed support – ING
The dramatic repricing of the Bank of England tightening cycle has taken its toll on Sterling over recent weeks. Economists at ING analyze GBP outlook ahead of the Interest Rate Decision.
EUR/GBP would test the July high at 0.87 were the BoE to surprise with a pause
The market now only prices a 47% chance of a 25 bps rate hike today. The BoE may not be swayed by some of the volatile factors that drove CPI lower in August and instead, continued high wage growth may be the swing factor that sees it deliver a 25 bps hike after all. That is ING’s call.
A hike would provide GBP/USD with some much-needed support. If not the path to 1.2100 would be open. Equally, EUR/GBP would test the July high at 0.87 were the BoE to surprise with a pause.