FXStreet (Delhi) – Brian Daingerfield, FX Trading Strategist at RBS, expect the UK August consumer inflation to fall further but the fall is unlikely to cause major weakness in the country’s currency against the Euro, he further adds.
Key Quotes
“Our independent research UK economists expect the August CPI to edge down further in August. While that weakness may weigh on GBP initially, we are constructive on the outlook for the GBP this week vs. the EUR.”
“The BoE’s MPC kept a relatively hawkish stance, even as the ECB took a strong dovish turn this month.”
“We think an FOMC rate hike this week, our house view, could support the GBP vs. the EUR as the Bank of England is seen as gaining scope to raise interest rates themselves without widening its rate divergence against the US.”
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