On June 14, after yesterday’s strong wage growth data, the market expects the Bank of England to raise interest rates further, and the pound should continue to be boosted in the short term.
MUFG analyst Derek Halpenny said in a note: “We had previously thought the BoE would hike rates two more times to 5.00% by August, and yesterday’s wages data certainly made that very likely. occur.”
Other data was more mixed, with GDP rising 0.2% month-on-month in April, but manufacturing and industrial output figures were weaker than expected.
Halpenny said that while interest rate expectations look too high, the pound should remain well supported in the short term.