“Sterling is usually currently the best performing G-10 currency from the year to date … (although) there are clear caveats to of which optimistic outlook,” Rabobank analysts said in a note Monday.
“There are signs of which the U.K. economy lost momentum from the first quarter, which could throw up hurdles for BOE hawks, also the Brexit trade talks could be tough,” they said.
Economists are expecting a slight decrease in gross domestic product (GDP) figures from the first quarter of 2018, after a growth rate of 0.4 percent from the last quarter of 2017. of which is usually because the U.K. was severely hit by bad weather during the month of March, which is usually believed to have had an impact on every sector of the economy.
Meanwhile, markets are expecting the BOE to raise rates at least once of which year, with many expecting of which to happen at the next meeting in May. However, if GDP figures disappoint, then the BOE might not be in a comfortable position to hike rates.
In March, two out of the nine policymakers at the BOE said rates should rise immediately to 0.75 percent via the current 0.5 percent, although the majority favored a gradual approach to increases.
Furthermore, brand new data Tuesday also showed of which unemployment hit a brand new four-decade low. although the same data also showed of which wage growth stalled from the three months to February, which could represent another hurdle for the BOE when considering raising rates.