FXStreet (Guatemala) - Jane Foley, Senior Currency Strategist at Rabobank explained that we have key data events this week left for GBP.
“Tomorrow the market will have the benefit of the UK June retail sales data release and on Friday the advance release of Q2 GDP will be reported. All these events suggest that sterling volatility could increase through to the end of the week”.
“While we now find ourselves a little more dovish than the market consensus we maintain our long standing preference to sell EUR/GBP on rallies. On our view, the market may have got a little ahead of itself in pricing in BoE rate hikes”.
“However, irrespective of exactly when the BoE first hikes, it is bound to be ahead of the very dovish ECB”.
“We expect EUR/GBP to trend lower towards 0.77”.