FXStreet (Guatemala) - RBS analysts noted that Governor Carney's signal that rate hikes may come earlier than the market expects is a bit at odds with the softening inflation, particularly after the MPC minutes continued to stress the importance of the inflation outlook in the calculus for timing the start of the exit.

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“But the relative monetary policy case for more GBP gains against EUR is compelling. In broader, trade weighted terms, we see further near-term sterling REER gains”.

“Next week includes a variety of UK event risk, most notably the Financial Policy Committee's will release its recommendations following its June 17th meeting”.

“At the Mansion House event, Chancellor Osborne announced increased flexibility for the BoE's FPC to tackle imbalances in the housing market. That may mean new macroprudential measures are coming sooner rather than later”.

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Forex pairs in this Article » GBP/USD

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