Economists at ING analyze how UK data could impact the British Pound (GBP).

Watch for data outliers

Today’s focus will be on the Bank of England’s Decision Maker survey, which has pointed to easing pay and price expectations over the coming months.

Markets remain highly sensitive to any incoming developments on the price side and the still quite aggressive BoE tightening expectations (140 bps by January 2024) do point to some risk of recalibration (and GBP downside risks) around any release.

EUR/GBP has been weakening in the past two sessions, but may find some support around current levels and even converge back to 0.8600 as the overbought Pound faces some BoE repricing threat.