The Financial institution of England’s MPC assembly this Thursday may not immediate a significant reassessment of the tempo of the easing cycle, ING’s FX analyst Chris Turner notes.
EUR/GBP could also be extra comfy within the 0.8650-0.8700 space
“If that is the case, we doubt EUR/GBP must stray too removed from the 0.8700 space. Equally, there might be a constructive shock for sterling have been the BoE to announce {that a} decrease tempo of quantitative tightening – e.g., £75bn per 12 months as a substitute of £100bn – was accompanied by fewer gross sales of longer-dated Gilts. That would take some stress off the longer finish of the curve and be seen as a constructive for UK sovereign danger.”
“We are likely to assume EUR/GBP can be extra comfy within the 0.8650-0.8700 space this week.”
