- Analytics
- News and Tools
- Market News
- BoE: Growing confidence to tighten, sterling to trade with a firm tone - TDS
BoE: Growing confidence to tighten, sterling to trade with a firm tone - TDS
FXStreet notes that GBP caught a modest bid tone following the BoE's policy decision and economists at TD Securities look for some sterling strength, but expect this to be more acute against the euro.
“The MPC left policy on hold today, with its QE programme scheduled to end in December. The MPC noted that the case for tightening had increased since August, and that a rate hike before they conclude QE in December can't be ruled out. We now expect the MPC to hike rates in August and November 2022.”
“The risk that the BoE could hike before QE ends is notable, and one we do not dismiss easily. We think that is enough to help GBP trade on its front-foot for the time being, though the magnitude remains elusive.”
“The euro has struggled since the Fed upped its hawkishness yesterday, and questions over policy divergence cloud its near-term profile for now. And, the risk that a BoE hike could still come before QE's end anchors this more deeply. We look for EUR/GBP to re-test 0.85 in the coming weeks. Below this, 0.8450 will be crucial support.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
