GBP/USD fluctuates in a narrow range above 1.22 on Monday. Economists at ING expect cable to trade above 1.20 for the time being.

Any rate pushback from BoE members?

“Supported Bank of England rate expectations have provided a floor for now. We continue to see some risks that we’ll see some dovish re-pricing of those rate expectations, but for now, that may only come from some explicit pushback by any of the BoE speakers scheduled this week (we’ll hear from Jonathan Haskel and Catherine Mann today). That’s because on the data side we could see yet another modest acceleration in headline inflation, while the core rate may stay above 6.0%.”

“We could see cable hold above 1.20 for now despite the dollar staying largely bid, and EUR/GBP staying around 0.8550-0.8600.”