Five things to watch in markets in the week ahead
Investing.com -- Bank of England Governor Andrew Bailey and Chief Economist Huw Pill are scheduled to speak on Monday, with markets closely monitoring their comments for signals on future interest rate decisions.
Bailey indicated last week that while rate cuts should continue, they would proceed at a more unpredictable pace. These remarks come as the central bank navigates its monetary policy path amid evolving economic conditions.
ING maintains its expectation for another rate cut in November. With market pricing currently at 7 basis points, the EUR/GBP exchange rate has potential to move higher into year-end, according to the bank.
The upcoming November Budget could introduce additional volatility that may push the currency pair upward, ING noted in its analysis.
For the current week, however, ING suggests that EUR/GBP might not increase significantly unless there are major divergences in PMI data between the UK and eurozone. The bank cited a "lack of convincing drivers to sell the expensive pound" as a limiting factor for substantial movement in the currency pair.
UK PMI data will also be in focus this week as markets assess the economy’s performance alongside central bank commentary.