8 Mar 2016
UK: Sterling is trading heavier - BBH
Research Team at BBH, notes that the Sterling is trading heavier after briefly poking through $1.4280 yesterday.
Key Quotes
“Support is seen in the $1.4140-$1.4180 band. The BOE may not take a stance on Brexit, but it is clear that the mere fact of the referendum is complicating its task. Late yesterday it announced that there were be three extra liquidity provisions before the referendum.
Governor Carney has also argued before Parliament that a strong EMU, with fiscal transfers, is in the UK's interest. The IMF will also issue a report on Brexit in a couple of months, but it is clear that it considers a destabilizing threat. At the same time, the issue appears to have taken on an "elite vs. people" dimensions, according to some reports, suggesting that the BOE and IMF's views may not sway the decision.”
Key Quotes
“Support is seen in the $1.4140-$1.4180 band. The BOE may not take a stance on Brexit, but it is clear that the mere fact of the referendum is complicating its task. Late yesterday it announced that there were be three extra liquidity provisions before the referendum.
Governor Carney has also argued before Parliament that a strong EMU, with fiscal transfers, is in the UK's interest. The IMF will also issue a report on Brexit in a couple of months, but it is clear that it considers a destabilizing threat. At the same time, the issue appears to have taken on an "elite vs. people" dimensions, according to some reports, suggesting that the BOE and IMF's views may not sway the decision.”