BoE DG emphasizes caution in policy – ​​Scotiabank

The British Pound (GBP) is a mixed performer among major currencies on the session, notes Shaun Osborne, Chief FX Strategist at Scotiabank.

GBP gains modestly, capped around 1.26

“Bank of England (BoE) Chief Executive Lombardelli’s first speech since joining the Bank earlier this year emphasized caution in cutting rates amid signs that wage growth trends continue. “The statements follow similarly cautious comments from Governor Bailey last week.”

“Swap pricing continues to reflect market expectations that the BoE will remain on hold in December, but will likely resume rate cuts—cautiously—in early 2025.”

“GBP rose over the weekend and although the bounce is challenging short-term resistance (minor trend from early November high at 1.2610), it is not doing so very aggressively. A pullback to the lows of 1.25—to fill the overnight gap—before the GBP can rise further and perhaps see a small relief rally towards 1.27/1.28.”

Source: Fx Street

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