It took the Bank of England (BoE) a while, but in August it finally began its easing cycle, note ING FX analysts Francesco Pesole and Chris Turner.
BoE rate cuts may trigger reduction in GBP long positions
“No forward guidance was given, probably due to the fact that it was only a 5-4 vote in favour of a cut. And the fact that Chief Economist Huw Pill voted against dovish Governor Andrew Bailey was notable.”
“However, subsequent speeches suggest that if services inflation can continue to trend lower, further cuts are on the cards. We expect 25 basis point cuts in November and December. This should keep GBP/USD relatively subdued and largely below 1.30.”
“Speculators had also been holding fairly long GBP positions. We think BoE rate cuts may trigger a reduction here.”
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.
