Sterling Remains Pressurized After The BOE Decision

BOE

It was as best as the BOE could have played it in guiding markets to thinking that they would be less aggressive next and that we can expect a 25 bps rate hike as the next move by the central bank.

So, what does that mean for the pound? The BOE tightening cycle has reached its sunset stage, giving further credence to that notion. Policymakers are angling towards a slower pace at the tail-end of the procedure, and the statement and monetary policy report also reaffirm that.

The pound is struggling with cable dipping just below 1.2300 and threatening a break from its recent consolidation.

Meanwhile, EUR/GBP has a clear and easy path towards 0.9000 as long as the ECB sticks to the script later today.

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