GBP: Brexit progress and solid data may unlock some hawkish BoE sentiment - ING
While Season 1 of the show 'Solving Brexit' ended last week with the UK and EU striking a divorce deal at the 12th hour, there are still plenty of exciting spin-off shows for GBP markets to tune into this week, according to Viraj Patel, Foreign Exchange Strategist at ING.
“In terms of ratifying the Brexit divorce deal, the EU Leaders Summit (Thu) should pretty much be a formality – or a post-season wrap-up party as one might say. Instead, the Bank of England meeting (Thu) is probably now the standout event this week; while we suspect the statement will be largely unchanged, it’ll be interesting to see whether the MPC explicitly acknowledge the recent Brexit progress. If so, one could see this as a hawkish development – with risks GBP/USD moves up to 1.3500/50.”