GBP: Focus on BoE survey today – ING

In the UK, the focus today will be on the Bank of England's Decision Maker Panel survey of CFOs. The most interesting question for the market will be whether expected and realized wage growth continues to slow, ING’s FX strategist Chris Turner notes.  

1.3100 is the risk for GBP/USD today

“If so, the market might be tempted to close the gap between the pricing of the BoE and Fed easing cycles. Looking at what's priced before year-end, we see 107bp priced for Fed easing and just 44bp for the BoE. We suspect more easing can be priced for the BoE, which could leave GBP/USD a little vulnerable.”

“Also today is Bank 1.3100 is the risk for GBP/USD today of England chief economist, Huw Pill, speaking at the Bruegel Institute in Brussels at 11CET.  He voted against the rate cut in August. It is unclear whether he will go near monetary policy in his speech today, but if he does, any signs of greater confidence in the disinflation process could also hit the pound.”

“1.3100 is the risk for GBP/USD today and medium term we see the cable rally contained in the low 1.30s.”