GBP: Brexit progress and solid data may unlock some hawkish BoE sentiment - ING

While Season 1 of the show 'Solving Brexit' ended last week with the UK and EU striking a divorce deal at the 12th hour, there are still plenty of exciting spin-off shows for GBP markets to tune into this week, according to Viraj Patel, Foreign Exchange Strategist at ING.

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“In terms of ratifying the Brexit divorce deal, the EU Leaders Summit (Thu) should pretty much be a formality – or a post-season wrap-up party as one might say. Instead, the Bank of England meeting (Thu) is probably now the standout event this week; while we suspect the statement will be largely unchanged, it’ll be interesting to see whether the MPC explicitly acknowledge the recent Brexit progress. If so, one could see this as a hawkish development – with risks GBP/USD moves up to 1.3500/50.”