GBP: Near-term support for the pound - ANZ

Analysts at ANZ see near-term support for the pound, especially against the euro.

Key Quotes

“Economic and income growth are set to remain weak; however the BoE has signalled that it is going to hike regardless. For this to remain the case macro-momentum will need to be maintained. As such, retail sales this week are likely to drive volatility in sterling.”

“BoE & Brexit: After the ‘hawkish hold,’ the chances of a November hike shot to ~50%. Comments from BoE’s Governor Carney will be watched closely to confirm this move. Uncertainty around Brexit is still key, so PM May’s speech on Friday could have an impact. She will provide an update on the UK’s plan, with any softening in the UK stance meaning swifter negotiations and thus a stronger pound.”