The Pound remains under pressure. Overview for 14.02.2022

GBPUSD is retreating early in the week; there will be a lot of interesting ahead.

The British Pound is “losing weight” against the USD on Monday. The current quote for the instrument is 1.3511.

This week, the United Kingdom is scheduled to release a lot of macroeconomic reports, from the labour market to prices. The Pound is going to have a very volatile time. 

In the meantime, investors are still discussing and analysing the BoE’s monetary strategy. Since inflation remains quite high, current market expectations imply one more rate hike during the next meeting of the regulator, which is planned for 17 March. If forecasts match expectations, it will be the first time the BoE raises the rate three meetings in a row since 1997. 

Rate expectations change very quickly. For example, in January, it was believed that there would be one rate hike in 2022. Right now, aggressive investors are expecting the regulator to raise the rate by a total of 75 basis points in March and May. 

At the same time, most investors believe that the British regulator’s rate hike should be more than expected, but not less.