The British pound remains resilient against the USD on Monday morning in what is scheduled to be a quiet week in terms of UK data. A quick recap last week revealed higher inflationary pressures, marginal improvements on retail sales and PMI numbers alongside tight labor market data. Markets reacted rather aggressively that led to a hawkish re-pricing of the Bank of England’s (BoE) interest rate probabilities (see table below), now including almost 3 additional rate hikes this year! While this is likely an overestimation, it looks clear that the BoE may not cut at all this year.
