Sina US Stock Exchange Beijing time February 19 Bloomberg News, the short-term trend of the pound this week may be driven by economic data, which may determine whether the Bank of England will raise interest rates within three months.

Traders will be most concerned about the UK jobs data released on Wednesday, and any signs of improvement will suggest that the source of inflationary pressures has exceeded the exchange rate effect after Brexit. Current money market pricing suggests that the bank of England is 76% likely to raise interest rates by may, up from 51% on February 7th.

Sterling rebounded above 1.40 after the Bank of England's Monetary Policy Committee decision on February 8 raised expectations of an interest rate hike in the first half of the year. The inflation figures were also higher than expected, holding steady at 3 per cent in January, well above the central bank's inflation target.

"everyone was surprised by the Bank of England's frank hawkish stance, so every piece of data will now be tested to see whether it will lead to an interest rate hike in May or a miscarriage," said Sonja Marten, FX strategist at DZ Bank AG in Frankfurt. Her forecast for the next six months is 1.45 pounds. If there is evidence to confirm the prospect of raising interest rates, the pound will clearly benefit. "

Labour market data on Wednesday are expected to show that base salary growth held steady at 2.4 per cent, the highest level in a year, while employment is expected to rise to a record high. Fourth-quarter GDP data will also be released on Thursday, with quarterly growth expected to be 0.5 per cent, according to a Bloomberg survey.

The pound fell 0.35 per cent to 1.3978 at 15:15 London time and climbed 1.4 per cent last week, its first weekly gain this month. Sterling fell 0.18% against the euro to 0.8856.

Investors' perception of the Brexit process remains a driver of sterling. Over the weekend, British Prime Minister Theresa May reiterated her desire to reach a tailor-made agreement with the European Union. David Davis, Britain's chief negotiator for Brexit, will speak in Vienna on Tuesday.