GBP/USD bulls take charge as risk sentiment improves due to optimism for Russian diplomacy By ross_burland GBPUSD RussianFederation UnitedStates Politics BOE
Sales volumes in the UK in January rose 1.9%, surpassing forecasts of a 1.2% rise, as consumers began to return to more normal buying behaviours after a 4% drop in December 2021. The data helped the pound on the basis that the Bank of England would be expected to hikein March following additional data published last week showing inflation rising to a nearly 30-year high.
Biden stepped up his warnings about Moscow’s plans on the weekend after seeing evidence that an attack on Ukraine was imminent. Satellite images show a new phase of Russian military readiness and the US has intelligence that the Kremlin ordered an invasion prompted the latest Biden warning, officials say. Also, the US is prepared to impose swift and severe consequences if Russia invades, adding that Russia appears to continue preparations for a full-scale assault on Ukraine very soon.
''While markets are betting on a 50bps hike, we think the MPC is more likely to stick to 25bps increments. Wed is TSC, and Thurs/Fri sees 3 MPC members speak at the BoE's "Unwinding QE" conference, which could provide early hints on QT plans.''''Chicago Fed President Evans and Governor Waller will take part in a policy panel concerning the Fed’s new policy strategy.