GBP: Brexit is a key driver – Danske Bank
|According to Arne Lohmann Rasmussen, chief analyst at Danske Bank, today’s MPC meeting in the BoE is not likely to spur longer-lasting price action for sterling as it has been weighed upon by week data recently, but Brexit is set to return as its key driver and thus.
Key Quotes
“Market is pricing in the next BoE rate hike to arrive in January 2021, and given the already relatively dovish pricing of the BoE, we do not expect GBP to suffer from potential down revisions to the bank’s GDP and CPI estimates.”
“We expect EUR/GBP to stay within the 0.86-0.89 range near term with the development in Brexit negotiations directional for the cross. Note that Theresa May is expected to visit Brussels today. As such, appetite for GBP is likely to deteriorate as time passes without any signs of a new agreement between the EU and UK.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.