Jobs and wages data next week seen as a negative event risk for Sterling – ING

Economists at ING analyze GBP outlook ahead of important jobs data next week.

Sterling steady into jobs data next Tuesday

EUR/GBP volatility remains near recent lows and spot trades well within a tight 0.8570-0.8640 range. 

Second or third-tier UK data has been quite mixed recently, but the main event on the data front will be next Tuesday's release of jobs and wages data. We see that as a negative event risk for Sterling, where wage growth could continue to slow and take some of the steam out of the 100 bps+ BoE tightening expectations still priced in by money markets. 

GBP/USD to trade well within a 1.2400-1.2500 range.