Friday, July 28, 2017 3:06 AM EDT
After falling on Carney’s dovishness and rising on his newly found hawkishness, the pound will face Carney once again, this time at the “Super Thursday” meeting on August 3rd. What can we expect?
Here is their view, courtesy of eFXnews:
CIBC FX Strategy Research notes that the August 3rd BoE policy meeting will again manifest divergent opinions in a split MPC vote.
“However, with external member Kristin Forbes being replaced by the seemingly more dovish Silvana Tenreyro, only two clear hawks remain on the committee.
Notwithstanding Chief Economist Andy Haldane’s comments about potentially voting for a hike before the end of the year, we judge that markets are placing too high a probability on tightening. Haldane’s suggestion came with a clear rider that data would have to come in broadly as expected, but we see risks on that front as skewed to the downside,” CIBC adds.
As a result, CIBC argues that GBP/USD isn’t likely to recover much further over the next six months expecting the pair to stay capped under 1.30 through year-end.
Disclaimer: Foreign exchange (Forex) trading carries a high level of risk and may not be suitable for all investors. The risk grows as the leverage is higher. Investment objectives, risk appetite and ...
more
Disclaimer: Foreign exchange (Forex) trading carries a high level of risk and may not be suitable for all investors. The risk grows as the leverage is higher. Investment objectives, risk appetite and the trader's level of experience should be carefully weighed before entering the Forex market. There is always a possibility of losing some or all of your initial investment / deposit, so you should not invest money which you cannot afford to lose. The high risk that is involved with currency trading must be known to you. Please ask for advice from an independent financial advisor before entering this market. Any comments made on Forex Crunch or on other sites that have received permission to republish the content originating on Forex Crunch reflect the opinions of the individual authors and do not necessarily represent the opinions of any of Forex Crunch's authorized authors. Forex Crunch has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: Omissions and errors may occur. Any news, analysis, opinion, price quote or any other information contained on Forex Crunch and permitted re-published content should be taken as general market commentary. This is by no means investment advice. Forex Crunch will not accept liability for any damage, loss, including without limitation to, any profit or loss, which may either arise directly or indirectly from use of such information.
less
How did you like this article? Let us know so we can better customize your reading experience.