Sterling falls further on mounting rate cut bets
The British pound dropped to a seven-week low against the euro and a new 2020 low versus the dollar on Tuesday, as investors worried about the state of the economy and speculated that it would lead the Bank of England to cut interest rates this month.
Sterling fell sharply on Monday after another BoE policymaker had said he would vote for a cut to rates later this month unless economic data improved significantly.
Growth and industrial production data published on Monday were worse than expected, causing a spike in expectations for a rate cut. Money markets are now pricing in a close to 50% chance for a 25 basis point cut to rates from the current level of 0.75%, up from around a 20% chance on Friday.
Viraj Patel, a global macro strategist at Arkera, said he did not believe the Bank of England would cut rates at its January meeting, although markets are now shifting towards this idea.
“Expectations becoming embedded into markets may force the BoE’s hand. Either way the bulk of the dovish BoE re-pricing has happened in $GBP markets,” he said.
Sterling weakened to as low as $1.2955, down 0.3% on the day and bringing its year-to-date losses to almost 2.5%.
The pound dropped to 85.95 pence per euro, its weakest since Nov. 22.
“With GBP/USD speculative positioning turning sharply over recent months, the downside risk to GBP is building,” ING analysts noted, referring to investors’ shift to a net long pound position from a sizeable net short last month.
“Bar a possible rate cut, the uncertainty about the EU-UK trade deal should also limit GBP upside throughout 1H20.”
Concerns about Britain’s ability to agree to a trade deal with the European Union before the end of a Brexit transition period that Prime Minister Boris Johnson has said must conclude at the end of 2020 also weigh on the currency.
Short sterling futures continued to rally, as investors scaled up their bets on a cut in interest rates.
Source: Reuters
Comments (53)
how much does hydroxychloroquine cost
accutane before and after accutane coupon
modalert 100 price india modafinil uses
cheap prednisolone how often can i take prednisone
hydochloroquine https://plaquenilx.com/# why is hydroxychloroquine
adrafinil vs modafinil modalert 200
buy modalert reddit how to get modafinil prescription
bactrim antibiotic Sulfonamide antibiotic
what is a high dose of prednisone what is prednisone prescribed for
provigil half life provigil side effects
accutane coupon roaccutane side effects
modafinil india provigil generic
… [Trackback]
[…] Information to that Topic: dayfinanceltd.com/sterling-falls-further-on-mounting-rate-cut-bets/ […]
… [Trackback]
[…] Find More here to that Topic: dayfinanceltd.com/sterling-falls-further-on-mounting-rate-cut-bets/ […]
… [Trackback]
[…] Find More on that Topic: dayfinanceltd.com/sterling-falls-further-on-mounting-rate-cut-bets/ […]
… [Trackback]
[…] Info on that Topic: dayfinanceltd.com/sterling-falls-further-on-mounting-rate-cut-bets/ […]
… [Trackback]
[…] Information on that Topic: dayfinanceltd.com/sterling-falls-further-on-mounting-rate-cut-bets/ […]
… [Trackback]
[…] Information on that Topic: dayfinanceltd.com/sterling-falls-further-on-mounting-rate-cut-bets/ […]
… [Trackback]
[…] Read More to that Topic: dayfinanceltd.com/sterling-falls-further-on-mounting-rate-cut-bets/ […]
… [Trackback]
[…] Info to that Topic: dayfinanceltd.com/sterling-falls-further-on-mounting-rate-cut-bets/ […]
… [Trackback]
[…] Read More here to that Topic: dayfinanceltd.com/sterling-falls-further-on-mounting-rate-cut-bets/ […]
… [Trackback]
[…] Read More Info here on that Topic: dayfinanceltd.com/sterling-falls-further-on-mounting-rate-cut-bets/ […]
… [Trackback]
[…] Find More to that Topic: dayfinanceltd.com/sterling-falls-further-on-mounting-rate-cut-bets/ […]
… [Trackback]
[…] Find More on on that Topic: dayfinanceltd.com/sterling-falls-further-on-mounting-rate-cut-bets/ […]
… [Trackback]
[…] Find More on that Topic: dayfinanceltd.com/sterling-falls-further-on-mounting-rate-cut-bets/ […]
… [Trackback]
[…] Information to that Topic: dayfinanceltd.com/sterling-falls-further-on-mounting-rate-cut-bets/ […]
… [Trackback]
[…] Information on that Topic: dayfinanceltd.com/sterling-falls-further-on-mounting-rate-cut-bets/ […]
… [Trackback]
[…] Read More Information here to that Topic: dayfinanceltd.com/sterling-falls-further-on-mounting-rate-cut-bets/ […]
… [Trackback]
[…] Find More to that Topic: dayfinanceltd.com/sterling-falls-further-on-mounting-rate-cut-bets/ […]
… [Trackback]
[…] Find More to that Topic: dayfinanceltd.com/sterling-falls-further-on-mounting-rate-cut-bets/ […]
… [Trackback]
[…] Information to that Topic: dayfinanceltd.com/sterling-falls-further-on-mounting-rate-cut-bets/ […]
… [Trackback]
[…] Read More here to that Topic: dayfinanceltd.com/sterling-falls-further-on-mounting-rate-cut-bets/ […]
… [Trackback]
[…] Find More Info here to that Topic: dayfinanceltd.com/sterling-falls-further-on-mounting-rate-cut-bets/ […]
… [Trackback]
[…] Information to that Topic: dayfinanceltd.com/sterling-falls-further-on-mounting-rate-cut-bets/ […]
Explore the effectiveness of Accutane 100 mg for managing skin conditions. Get your supply now from our reliable online store. 100 mg Accutane.
Are there any differences in effectiveness between 120 mg Accutane and 120mg Accutane? https://isotretinoinex.website/
Get the most affordable accutane prescription price at accutane prescription price and enjoy great savings.
where can i buy real accutane online buy accutane singapore how can i get accutane online
buy isotretinoin accutane cream online buy cheap generic accutane
What is the price of Accutane if it is 20 milligrams in the UK? https://isotretinoinex.website/
Considering getting accutane pills online? Check out accutane pills buy online for more details.
What is the recommended daily dosage for Accutane 20 mg? https://isotretinoinex.website/
Looking for Accutane 100 mg at competitive prices? Browse our online store and order today! Click here for 100 mg Accutane.
order generic antivert 25mg
meclizine 25 mg oral
order meclizine pills
meclizine 25mg drug
buy generic meclizine 25mg
buy antivert online
order meclizine 25mg pill
meclizine 25 mg cost
brand meclizine 25 mg
antivert brand