8 Nov 2013
Flash: GBP performance vs Carney? - BBH
FXstreet.com (London) - The currency research team at BBH noted that the BOE meeting offered no surprises whatsoever.
Key Quotes:
“…and so we await next Wednesday’s inflation report to shed more light on BOE policy”.
“Today, the UK reported September trade and construction, with both coming in a bit worse than expected”.
“Currently, the December 2014 short sterling contract is implying a rate of around 0.75%”.
“This is well below September, when the same December 2014 short sterling contract implied a 1% rate, or in June, when the same contract implied a nearly 1.15% rate. If rate expectations move higher or sterling continues to firm, don’t be surprised if Governor Carney tries to push back next week”.
“Sterling has outperformed this week, with cable seeing support near $1.60”.
“EUR/GBP plunged to new lows for the move near .8300 Thursday before bouncing a bit. Technicals point to a test of the January 2013 low near .8080”.
Key Quotes:
“…and so we await next Wednesday’s inflation report to shed more light on BOE policy”.
“Today, the UK reported September trade and construction, with both coming in a bit worse than expected”.
“Currently, the December 2014 short sterling contract is implying a rate of around 0.75%”.
“This is well below September, when the same December 2014 short sterling contract implied a 1% rate, or in June, when the same contract implied a nearly 1.15% rate. If rate expectations move higher or sterling continues to firm, don’t be surprised if Governor Carney tries to push back next week”.
“Sterling has outperformed this week, with cable seeing support near $1.60”.
“EUR/GBP plunged to new lows for the move near .8300 Thursday before bouncing a bit. Technicals point to a test of the January 2013 low near .8080”.