GBP/USD propped up in pre-open APAC on BoE Bailey weekend comments – by fx_ross GBPUSD BOE CentralBanks Currencies
Governor Andrew Baily said on Saturday that inflationary pressures might require a stronger interest rates response from the central bank than it had envisioned in August.
However, the price would be weighed if markets continue the way they left off on Friday. As analysts at ANZ Bank explained, ''risk was firmly off in US markets as earnings results rolled in and the University of Michigan survey showed consumer inflation expectations rising for the first time in seven months.'' The analysts noted that ''the immediate market reaction to Truss’ tax U-turn was muted; Monday will bring the real test.
''The initial market response wasn’t exactly a high five – GBP extended its losses, while 10-year gilts trimmed gains after Truss’ press conference. But the gilt market’s immediate concern is the cessation of BoE emergency bond-buying. Monday’s market action will provide a test, not only for the survival of Truss’ low-tax vision, but also her political future,'' the analysts at ANZ Bank explained.Meanwhile, the data this week will be key.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
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BoE Gov Bailey: Stronger rates response needed to fight inflation, GBP/USD back above 1.1230 pre-openReuters reported that the Bank of England Governor Andrew said on Saturday that inflationary pressures might require a stronger interest rates respons
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