Credit Agricole CIB Research discusses its expectations for this week's BoE policy meeting.
"We believe that the currency could remain vulnerable in the near term especially against the resurgent USD. This week, focus will be on the BoE policy meeting and the June PMIs. While the UK data has improved ahead of the meeting, the UK government has delayed the full opening up of the UK economy and post-Brexit tensions with the EU have worsened," CACIB notes.
"We therefore expect the MPC to stick to its subdued medium-term outlook for both growth and inflation...We further doubt that evidence that the UK PMIs remained upbeat in June will do much to change the BoE overall outlook and therefore could be less supportive for the GBP," CACIB adds.