BOE’s Haldane: UK economy may be near pre-pandemic output levels

Dhwani Mehta FXStreet

The Bank of England (BOE) Chief Economist Andy Haldane noted some optimistic comments on the UK economy on Thursday.

He said that the UK economy may be near pre-pandemic output levels.

Last week, Haldane triggered a sharp rally in GBP/USD after he said that the “UK economy is going gang-busters,” adding that “we may need to start turning off the stimulus tap.”

His hawkish comments remain in investors’ minds ahead of next week’s BOE monetary policy meeting, with expectations of a sooner-than-expected rate hike building up, especially after the US Fed turned hawkish on Wednesday.

Market reaction

GBP/USD is under pressure below 1.4000 once again, having hit fresh six-week lows at 1.3966 in the last hour.

The spot ignores the above comments to trade 0.09% lower at 1.3974, at the time of writing.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

GBP/USD recovers to 1.3450 region, looks to post weekly gains

EUR/USD stays below 1.1450 after US data

Gold rebounds from July lows, struggles to reclaim $4,000

CLARITY Act approval odds sink fast ahead of Congressional hearing

The United States (US) House Financial Services Committee’s Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence (AI) is holding a hearing titled “Building the Future of Finance: How the CLARITY Act Unlocks Innovation” on Friday.

Week ahead – Could technology earnings revive equities as geopolitical risks linger?

Oil prices rise, but the dollar posts losses as Middle East tensions persist. US earnings, the ECB and UK newsflow dominate next week’s agenda. US equity markets face a pivotal test as focus shifts to technology earnings.

-0.4%: Why the biggest CPI drop since 2020 couldn't buy back a single cut

The June CPI fell 0.4% on the month, the largest one-month decline since April 2020, dragging the annual rate to 3.5% from May's 4.2% and snapping a three-month acceleration streak. Core prices went nowhere, flat on the month and down to 2.6% YoY, both under consensus.