23 Jan 2014
Flash: Hikes some way off from BoE? - BBH
FXstreet.com (Guatemala) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman noted that the pound has been bolstered by BoE.
Key Quotes:
"Sterling has been bolstered by the hawkish read of the BoE minutes and the larger than expected drop in the unemployment rate. The market has been warned by a BoE official that additional forward guidance will be delivered when the unemployment rate reaches the 7.0% threshold."
"Officials have been at pains to indicate that a rate hike is still some ways off, but market participants are somewhat less sanguine. The implied yield on the Dec 2014 short sterling futures contract has risen 14 bp since last Friday as the market brings forward rate hike expectations."
Key Quotes:
"Sterling has been bolstered by the hawkish read of the BoE minutes and the larger than expected drop in the unemployment rate. The market has been warned by a BoE official that additional forward guidance will be delivered when the unemployment rate reaches the 7.0% threshold."
"Officials have been at pains to indicate that a rate hike is still some ways off, but market participants are somewhat less sanguine. The implied yield on the Dec 2014 short sterling futures contract has risen 14 bp since last Friday as the market brings forward rate hike expectations."