GBPEUR

Dovish comments from Bank of England Chief Economist Huw Pill last week, where he
expressed caution over economic growth and was happy to consider ‘rate cuts’ in
2024 were enough to nudge sterling lower, despite a swift and rather amusing rebuttal
from Governor Bailey who was quick to remind markets that inflation remains way
above target, and further policy tightening would be seen if required.

GBPUSD

While the technical reversal to the upside remains intact, sterling was buffeted
somewhat last week by mixed messages from key figures at the Bank of England, Chief
Economist Huw Pill and Governor Andrew Bailey. This week sees a plentiful data
schedule with unemployment, inflation and retail sales data all landing to drive nearterm
sentiment.

EURUSD

Volatility remains low, amidst a relatively quiet European data schedule, as the euro
remains technically poised for further gains as the dollar strength wanes. Tuesday’s GDP
data, and Christine Lagarde speaking this Friday are key euro events to monitor in the
upcoming week.