The Bank of England upgraded growth forecasts last week and downgraded inflation forecasts - both marginally - and suggested that rate hikes may happen earlier than currently expected. An above forecast headline UK inflation print for January - 2.9% expected - would add credence to governor Mark Carney's comments and help GBP regain some of its recent losses.
Other trading topics covered include -
- A return to 3% headline inflation would support GBP and bring a UK rate increase in May into focus.
- GBP and the FTSE broke their previous inverse correlation when markets collapsed last week. Will this relationship rekindle?
- Brexit negotiations are not going well and GBP may suffer if nothing is settled ahead of the EU Summit Meeting on March 22-23.
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--- Written by Nick Cawley , Analyst
To contact Nick , email him at email@example.com
Follow Nick on Twitter @ nickcawley1
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
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