BTMU FX Strategy Research Research comments on the outcome of today's BoE meeting in which the central bank maintained a 7-2 vote in favor of keeping the policy unchanged.
"In light of today’s developments, we are reverting back to our prior call for the first BoE rate hike to take place in November, and to our stronger pound forecasts.
The more bullish set of pound forecasts expect cable to rise towards the mid-1.4000’s by the middle of next year, while EUR/GBP is also expected to decline but more modestly towards the mid-0.8000’s.
We would note in particular that there is now more upside risk to our year end cable forecast given that the Fed is also viewed as less likely to follow through with a final rate hike this year. Cable could easily test the 1.3500-level in the coming weeks/month and move back to levels last recorded on the day the referendum results were announced," BTMU argues.
Source: BTMU ResearchOriginal Article
