GBP outlook

On Tuesday at 09:30 Britain will release Q2 GDP estimates, with Sterling likely to rally against the Euro if a strong report supports BOE Governor Mark Carney's recent hawkish comments about future rate hikes. Analysts expect growth of 0.7 percent (q/q) between April and June, almost twice the 0.4 percent expansion in Q1. 

However, a weaker number in the context of slowing global growth led by China, may not bode well for Sterling ahead of the BOE's critical Quarterly Inflation Report and interest rate guidance on August 06. GBP/EUR is down more than 2 percent over the past week.