GBP/USD awaits the Bank of England’s Governor Andrew Bailey's speech at the ECB forum in Sintra, Portugal on Wednesday. Hawkish remarks are needed to lift the pound, economists at Scotiabank report.

Markets set a high bar for the BoE with 165 bps expected by year-end

“There are no domestic drivers for GBP price action until tomorrow’s address by BoE Gov Bailey where we’re looking for confirmation that the bank will tighten by 50 bps in Aug. With weak UK growth and global recession fears, the GBP will need the support of a hawkish central bank.” 

“Markets have set a high bar for the BoE with 165 bps in hikes expected by year-end, so further downside on the crosses for the GBP looks more likely.”