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12 Feb 2014
Flash: BoE Inflation Report important for GBP/USD near term view - Danske Bank
FXStreet (Barcelona) - Kasper Kirkegaard, Chief Analyst at Danske Bank notes that GBP has lost a bit of its shine recently as the market has come to the conclusion that the BoE will not support market calls for early rates hike.
Key Quotes
“Hence, today's Inflation Report will be important for the short-term outlook for GBP.”
“However, looking a few months ahead we still expect a very divergent monetary policy from the BoE and the ECB and EUR/GBP to fall towards 0.80 throughout 2014. Today, however, the risk is tilted to the upside for the cross.”
Key Quotes
“Hence, today's Inflation Report will be important for the short-term outlook for GBP.”
“However, looking a few months ahead we still expect a very divergent monetary policy from the BoE and the ECB and EUR/GBP to fall towards 0.80 throughout 2014. Today, however, the risk is tilted to the upside for the cross.”