7 Jun 2014
GBP, employment in focus - RBS
FXStreet (Guatemala) - Analysts at RBS, on the topic of UK domestic events, explained that the GBP and UK have been overshadowed by developments in the EUR over the past week.
Key Quotes:
“Bank of England Governor Carney is due to speak at the Mansion House event next week and is likely to give a rehash of the Bank's consensus, and his own, still dovish views. The MPC meeting minutes on June 18th, however, may hint at a more balanced picture among the individual MPC members”.
“April employment is the key event next week and we expect a further outperformance in employment to keep upside pressure on UK interest rates and the GBP, putting further doubt in the MPC's ability to remain credibly dovish’.
“GBP in our view remains a story of near-term upside on UK data and interest rate outperformance coupled with medium term downside risks stemming from a widening current account deficit and fiscal and political risks”.
Key Quotes:
“Bank of England Governor Carney is due to speak at the Mansion House event next week and is likely to give a rehash of the Bank's consensus, and his own, still dovish views. The MPC meeting minutes on June 18th, however, may hint at a more balanced picture among the individual MPC members”.
“April employment is the key event next week and we expect a further outperformance in employment to keep upside pressure on UK interest rates and the GBP, putting further doubt in the MPC's ability to remain credibly dovish’.
“GBP in our view remains a story of near-term upside on UK data and interest rate outperformance coupled with medium term downside risks stemming from a widening current account deficit and fiscal and political risks”.