Credit Agricole on upcoming data, the Bank of England, and sterling:
Credit Agricole CIB FX Strategy Research argues that while politics may continue to cloud the outlook for GBP, potential positive surprises from the upcoming UK CPI and labor market data should provide GBP with some support this week.
"BoE Governor Carney is due to appear but the newly appointed members, Dave Ramsden and Silvana Tenreyro, will also answer questions. Whilst both of the newer members voted with the majority at the last MPC meeting, little is known about their personal stance.
We expect BoE rate hike expectations to remain well supported into the November inflation report and they will continue to underpin GBP against EUR and USD," CACIB adds.
For bank trade ideas, check out eFX Plus
