Economists at ING discuss the next UK data due to be released this week and its implication for the BoE policy and Sterling.

Services PMI in focus

“In the past, the release of services PMI data has been a driver of Sterling given the large representation of the services sector in the UK economy. Another positive reading is expected today in the 55 area. Such an outcome would unlikely dent the market's current pricing of an 84% probability that the Bank of England hikes by 25 bps on 22 June. Far more important to that debate will be the UK April CPI data released tomorrow.”

“0.8660-0.8735 is the clear EUR/GBP range and it will probably be tomorrow's CPI figures which pose the best chance of a range break-out.”