The BoE holds a coverage assembly on Thursday. What can we anticipate from the financial institution and the way will this have an effect on the British pound?
Right here is their view, courtesy of eFXdata:
Credit score Agricole CIB Analysis discusses its expectations for the BoE coverage assembly on Thursday.
“This week, focus shall be on the BoE’s coverage assembly and financial coverage report. We anticipate the MPC to downgrade its financial outlook in view of the most recent lockdown measures and the lingering dangers after Brexit. We proceed to anticipate the BoE to chop charges in Q221 in distinction to the market consensus that has pared again its expectations of additional easing till the top of this yr,” CACIB notes.
“Proof that the market has front-loaded its price minimize expectations after the BoE assembly may weigh on the GBP within the close to time period. Furthermore, extra persistent threat sentiment may add to the headwinds for the GBP vs the EUR and the USD as soon as once more,” CACIB provides.
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