020 7898 0500Sterling continued to tick higher on Wednesday ahead of today’s ‘Super Thursday’ release from the Bank of England (BoE). Given the lower first quarter (Q1) Gross Domestic Product (GDP) reading we saw last week, and the upcoming general election and EU negotiations, we are a little surprised to see the currency as elevated as it currently stands.
The pound stays strong as euro remains under pressure
‘Super Thursday’ consists of the BoE meeting, the minutes and the quarterly inflation report. Given the current levels of uncertainty, it would not be a surprise if the BoE reiterates a cautious tone towards the growth and economic outlook. It could also acknowledge that inflation is not only above target, but higher than wage growth as well.
Finally, we also have the manufacturing production and the UK goods trade balance to come.
