The GBP trades sideways this morning, amid a lack of significant catalysts, and as markets await this afternoon’s all-important US PCE figures for the latest read on the stateside inflation outlook.
UK-specific macro data- and news-flow has been light of late, with comments from the BoE’s Mann regarding a “lack of consumer discipline” complicating the MPC’s achievement of the inflation target failing to jolt any life into the quid.
The next major catalyst will likely be next Wednesday’s Budget, though the impact of the fourth major fiscal event in two years is unlikely to be significant in the FX space.
With most of the likely announcements set to be well-trailed in the media before Chancellor Hunt steps up to the despatch box, likely leaving the GBP to be driven primarily by external factors, and remain within its recent 1.26 – 1.28 range, for the time being.
