The Bank of England (BoE) is widely expected to cut rates by 25bp today, bringing the policy rate to 4.75%, ING’s FX Analyst Chris Turner notes.
The Bank of England is widely expected tocut rates by 25bp today, bringingthe policy rate to 4.75%, ING’s FX Analyst Chris Turner notes. Governor Andrew Bailey's press conference may impact GBP “Most expect the vote count to prove 8-1 in favour of a cut,although the Pound Sterling could quite easily receive a temporary boost if the vote is 7-2 or 6-3. More impactful for GBP, however, should be Governor Andrew Bailey's press conference.
” “Recall that the budget helped the market re-price the BoE easing cycle higher by some 25bp. And we think the market's pricing of the BoE lending rate at above 4.00% next year is too high. We think the BoE will cut more than that.We therefore think there is downside risk to UK rates and GBP today if Bailey downplays the significance of the UK budget to the BoE easing cycle.” “That means EUR/GBP could enjoy a temporary spike back to the 0.8370/8400 area.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
How to Trade GBP/USD, GBP/JPY and EUR/GBP Ahead of the Crucial UK BudgetForex Analysis by MarketPulse (Zain Vawda) covering: Euro US Dollar, British Pound US Dollar, Euro British Pound, British Pound Japanese Yen. Read MarketPulse (Zain Vawda)'s latest article on Investing.com
Read more »
GBP/USD: UK rates markets pare back BoE easing expectationsThe UK budget update largely conformed to expectations. The government will raise taxes and borrowing significantly but will also spend heavily on priority projects, Scotiabank’s Chief FX Strategist Shaun Osborne notes.
Read more »
GBP/USD tests 1.3000, faces headwinds due to dovish sentiment surrounding the BoEThe GBP/USD pair edges higher toward 1.3000 during Asian trading on Wednesday.
Read more »
EUR/GBP extends downside below 0.8350, investors await the BoE rate decisionThe EUR/GBP cross extends its decline to around 0.8345 during the early European session on Wednesday.
Read more »
GBP/USD moves away from multi-month low, retakes 1.2900 ahead of BoE/FedThe GBP/USD pair attracts some buyers during the Asian session on Thursday and moves away from its lowest level since mid-August, around the 1.2835-1.2830 region touched the previous day.
Read more »
GBP/JPY flat lines above 199.00, looks to BoE for fresh impetusThe GBP/JPY cross retreats a few pips after touching a one-week high, around the 199.55 region during the Asian session on Thursday, albeit it lacks follow-through selling.
Read more »