GBP: Labour market report will attract some attention – Danske Bank

Chief Analyst Jens Peter Sørensen at Danske Bank, suggests that for GBP, today’s labour market report will attract some attention as the market is already pricing in 19bp for a rate hike in May, and our call for unchanged wage growth and unemployment (in line with consensus) is not likely to change BoE pricing.

Key Quotes

“Meanwhile, focus remains on Brexit ahead of the EU summit on 22-23 March. We expect EUR/GBP to trade within the range of 0.8880-0.8925 in the short term, while the wide range of 0.8650-0.90 is likely to remain intact in coming months with the prospects of BoE rate hikes curbing the upside potential.”