GBP/USD Weekly Forecast: BoE Hawks vs UK Reopening Concerns
2021-05-28 16:00:00
Justin McQueen,
Analyst
Lack of Domestic Data Turns Focus on The US
Risks That Reopening Plans Need to Wait Provide a Headwind for GBP
GBP has managed to hold onto gains stemming from BoE’s Vlieghe, who provided rather hawkish comments having discussed conditions where a rate hike in 2022 may be appropriate. The move in the Pound highlights the markets elevated sensitivity to changes in the stance from central banks (RBNZ another example). Alongside this, while Vlieghe is leaving the BoE at the end of August, the fact that he is typically more dovish relative to other MPC members may give a sense of where the rest of the member s stance lies. That said, money markets are fully pricing in a move to 0.25% by Nov 22, a further hawkish repricing may see that shift towards Q3 2022.