Thoughts from Barclays capital FX strategy research on GBPUSD

Barclays capital FX strategy research argues that sterling face is symmetrical risks after last week's selloff.

"The gyrations of domestic politics in the UK will likely add downside risks to GBP this week, with a cabinet reshuffles in Westminster taking centre stage.

On the other hand, however the market reaction to the BOE hike announcement last week seems to have neglected some of the hawkish messages of the inflation report, and we would not be surprised to see some short-term rate repricing in the coming weeks, supporting GBP.

On the data front, we forecast industrial production to modestly increase in September ( Friday, Barclays: 0.3% m/M, consensus 0.3% m/m)"

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