GBP on a shaky ground – RBC CM

After a busy week for data and central bank speakers, GBP remains amongst the worst-performing G10 currencies and is likely to retain its negative bias for the next week, accrding to Adam Cole, Analysts at RBC Capital Markets.

Key Quotes

“The SONIA-implied probability of a rate hike this year remains close to 50%, however, and in our view this overstates the risk of rates rising and we retain a core negative-GBP view into another heavy week for UK data next week. Note that our UK economic surprise index is again deeply negative this week (-43). The index has not been positive since April, and negative readings have been accompanied by net downgrades to longer-term UK growth expectations.”