GBP traded mixed against other major currencies in the European session on Monday as investors prepared for a slate of the UK crucial economic data later this week, which could prompt a revision of markets’ expectations of interest rate cuts from the Bank of England.
Tuesday will bring the British employment and wage growth data for the second quarter, shedding more light on the labour market conditions. These data will be followed by the UK reports on inflation - both consumer and producer - on Wednesday, and the preliminary GDP growth estimate for the second quarter on Thursday.
Investors will thoroughly weigh where the economic data justify their current bets on additional 44-basis-point policy easing by the BoE by the end of this year, following a 25-basis-point rate cut earlier this month.