GBP to see some pre-CPI positioning to dominate trading and volatility to pick up next week – ING

The Pound is stronger after upbeat UK GDP data. Economists at ING analyze GBP outlook.

Good GDP numbers no game-changer for the BoE

June’s growth numbers in the UK beat expectations, helping to cement a 0.2% QoQ figure for the second quarter. We believe that the implications for the Bank of England are probably quite limited, given the numbers are not far from its forecasts and the focus is firmly on services inflation and wage growth, which are both out next week.

Next week is a key one for the Pound, expect some pre-CPI positioning to dominate in GBP trading and volatility to pick up.