The GBP has undone some of the profits that it obtained against the EUR yesterday, which indicates that the market is not convinced that the pound is a robust coverage against the probability of an increase in commercial tensions between the EU and the US ., points out Jane Foley, FX analyst from Rabobank.
The MPC will adjust its language to reflect the growing downward risks
“Of course, the 30 -day extension that the Trump administration granted both Canada and Mexico yesterday suggests that the president may not be willing to impose severe tariff In addition to Canada and Mexico, Trump’s rhetoric towards the EU has been clear.
“While GBP has revalued this year to take into account a growth and budgetary perspective of the United Kingdom poorer than was expected at the time of July elections last year, Germany and France have their own structural problems .
“In addition to politics, the markets also have in view of the BOE meeting this week. The Bloomberg survey shows that all except two forecasts await a rate cut of 25 basic points by the MPC this week. While we hope that the MPC maintains your gradual approach to politics flexibility, we anticipate some language settings to reflect the growing downward risks, which could weigh on the short -term pound and push the minimum of yesterday around EUR/GBP0.8250 out of view for now.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
