Barclays Capital FX Strategy Research expects GBP to rally on the back of a Bank of England set to raise rates to 0.50% at its meeting on Thursday. while leaving its QE Asset Purchase Program unchanged.
"In its statement, the Bank likely will want to dispel expectations of a one-and-done hike and encourage the pricing of a gradual hiking cycle, engendering a sell-off in short-term rates and strengthening the GBP," Barclays argues.
In line with this view, Barclays recommends buying GBP against a basket of the USD and JPY as its trade for this week.
Source: Barclays ResearchOriginal Article
