High Volatility alert on UK GBP this week!
This article is originally referred from Orbex News.
The week ahead is expected to be a busy week as far as the British pound is concerned.
Data points this week include the monthly jobs report and the inflation figures.
The reports come out as the Bank of England prepares to hike interest rates at the August monetary policy meeting.
Adding to the volatility is also the fact that the uncertainty about Brexit once again comes into the forefront.
Last week, the markets reacted to the news about the resignation of the UK’s chief negotiator for Brexit, David Davis.
While the markets initially cheered the news on hopes of a soft Brexit, there was another shock as Boris Johnson; the foreign secretary also tendered his resignation.
While there are hopes that the exit of these two key members from the UK administration could pave the way for a soft Brexit, a number of questions still remain.
Most importantly, the developments from last week put to question the ability of the UK administration’s ability to follow through.
Amid the uncertainty, the inflation and wage growth data remain key factors for the BoE officials.
There has been some positive developments as far as monetary policy is concerned.
The revised first quarter GDP was seen rising 0.2% against the initial estimates of a 0.1% increase during the quarter.
Secondly, the forward looking indicators also suggest that the second quarter growth might have picked up.
A better than expected inflation and wage growth data could potentially cement expectations of an August rate hike.
Original Source: Orbex News