BOE: Don’t expect the BOE to rescue the GBP
GBP weakness set for medium term
This article on Bloomberg makes the case for continued GBP weakness. Despite a number of people looking for a bullish hold tomorrow at the BOE’s rate meeting, the outlook for GBP looks grim:
- UK growth is poor
- Current account deficit is large
- Consumer to Gov’t have large debt levels (therefore vulnerable to rate rises)
Any boost on Thursday likely to be short term and pound likely to be lower a week from now….
Ok, making some good points and the sell off in the GBP/USD has been pronounced. Fundamentals are looking bearish for the pound medium term, look to sell on rallies…
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