GBP/USD: Too Early For A BoE Hike In November But Positive Momentum In Place – BTMU

BTMU FX Strategy Research has recently pulled its call on a BoE rate hike in November primarily based on the 'caution that we was evident by the MPC at the August meeting and the cut in real GDP growth by the BoE in the QIR released at that meeting.'

"We still think November is too soon for a hike by the BoE but the inflation data yesterday has certainly reinforced our view that the BoE will hike at the first QIR MPC meeting of 2018 on 8th February. The 2.9% annual increase in CPI in August certainly looks like setting the BoE up once again for under-estimating actual inflation," BTMU adds.

On GBP, BTMU argues that positive pound momentum could test the Sept 2016 high of 1.3445.

Source: BTMU ResearchOriginal Article