Sterling to face a volatile week – Commerzbank
|The uncertainty about the inflation outlook remains high in the UK. Next week’s data will be key to determine the next rate hikes of the BoE, causing volatility in GBP exchange rates, economists at Commerzbank report.
A rate hike in March is not off the agenda yet
“A rate hike in March is not off the agenda yet, seeing that upside risks for inflation are high. It will have to become clear for example how strikes by public sector workers affect wages. As the labour market also remains quite tight there is the risk of second-round effects.”
“In the end, the BoE has no choice but to wait for further data publication to get a better impression. There will be more opportunity to do that next week when labour market and inflation data is going to be published. Sterling is therefore likely to face a volatile week.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.