Sterling spent another week mostly in the red as the BOE didn’t sound too chipper about economic prospects. Can this week’s events change the pound’s mood?
BOE Inflation Report hearings (June 26, 9:15 am GMT)
The only U.K. top-tier economic catalyst on this week’s schedule is the BOE Inflation Report hearings mid-week. In this event, head honcho Carney and some of his fellow MPC members will be testifying in front of parliament regarding their inflation and growth outlook.
In particular, lawmakers are looking to get more insight on the central bank’s plans for Brexit. Last week, the BOE decided to cut their Q2 growth forecast to zero, citing global trade risks and increasing risks of a “no deal” Brexit.
With that, most of the questions could be centered on whether or not BOE policymakers still see potential rate hikes down the line. Sticking to a relatively upbeat stance amid dovish shifts among the BOE’s peers could allow sterling to keep its head afloat.
U.K. PM race
And it’s down to two! After the latest round of votes, Boris Johnson and Jeremy Hunt emerged as the final contenders for the top spot, with the former having 143 votes and the latter 54 out of 313.
Both have mentioned that they plan on taking the U.K. out of the EU by the October 31 deadline, even if there is no deal. However, Johnson is being touted as the candidate with a stronger chance to united the Conservative party and possibly get a few concessions in enough to secure a deal.
The final vote won’t take place until July 22, which means that the next few weeks could be focused on how much public confidence either candidate can rally.
Missed last week’s price action? Read GBP’s price recap for June 17-21!