The EUR/GBP remained close to the 0.85 mark in the session yesterday, Danske Bank's FX analysts report.
UK muted growths and inflation risks weigh in Boe
“Price action is constantly dominated by the appetite as domestic data leaks are scarce in the coming week. While retail sales continue to surprise the top of recent months, PMI data indicates more tentative signs of a more stagflationary UK environment.”
“The service sector slipped back into the territory of the retreat as the activity sector in the manufacturing sector remains masked. Price pressure has increased with both input and output prices. The more masked views on growth and higher price ingredients results in BOE problem.”
“There seems to be a intense tone within the MPC, which we hope to repeat in the meeting next week. We are looking for EUR/GBP to 0.88 in a 12 -month -old.”
