Time | Country | Event | Period | Previous value | Forecast | Actual |
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09:00 | Eurozone | Construction Output, y/y | August | 3.5% | | -1.6% |
12:05 | United Kingdom | BOE Gov Bailey Speaks | | | | |
GBP continued to strengthen against most of its major counterparts in the European session on Tuesday, as Sunday’s remarks of the Bank of England (BoE) governor Bailey heightened expectations for an interest rate hike before the end of the year.
The pound slipped against AUD and NZD, but rose against the rest of major rivals before the data.
On Sunday, the BoE’s governor Andrew Bailey warned that the UK’s central bank “will have to act” to curb inflationary pressure, in part linked to rising energy costs. These remarks raised expectations that the BoE could hike interest rates as soon as its next meeting on November 4, which would make it the first major central bank to increase rates since the beginning of the COVID-19 pandemic.