GBP: BoE speakers in focus – ING
|The UK published on Friday data showing a net public sector surplus of £15.4bn in January, which fell short of the £20bn estimated by the Office for Budget Responsibility in October alongside the Budget, ING’s FX analysts Francesco Pesole notes.
GBP to return below 1.25 in GBP/USD in March
"That further raises the probability that Chancellor Rachel Reeves will need to scale back spending if she wants to avoid hiking taxes in her Spring Statement on 26 March. Remember that the fiscal headroom originally expected last autumn has been eroded by the rise in gilt yields."
"We think sterling is going to suffer from the March Budget event, also as the Bank of England could see lower spending as a reason to unlock more cuts in line with the recent dovish shift in the MPC. While sterling is not as directly exposed to US tariffs as the euro, we expect the impact of upcoming broad-based US protectionist measures to weigh on all European currencies vis-à-vis the dollar. We expect a return below 1.25 in GBP/USD in March."
"This week, the UK data calendar is empty, so all the domestic focus will be on BoE speakers. We’ll hear from two doves today – Swati Dhingra and Dave Ramsden. Tomorrow, we'll hear from Chief Economist Huw Pill."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.