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25 Sep 2015
GBP: Weakness persists - BTMU
FXStreet (Guatemala) - Analysts at Bank of Tokyo Mitsubishi explained that the rhetoric from BOE MPC members has suggested no real shift in the policy stance.
Key Quotes:
"Ben Broadbent yesterday stated that he was not “on the brink” of raising rates Still, we are a little surprised with the degree of pound weakness versus the euro in particular and we have not seen any rhetoric that is inconsistent with the view that a rate increase could come soon after a Dec move from the FOMC.
From a 2- year spread perspective, EUR/GBP has been helped by a fall in the UK swap rate but we would not be surprised to see that fall in 2-year yields reverse quickly."
Key Quotes:
"Ben Broadbent yesterday stated that he was not “on the brink” of raising rates Still, we are a little surprised with the degree of pound weakness versus the euro in particular and we have not seen any rhetoric that is inconsistent with the view that a rate increase could come soon after a Dec move from the FOMC.
From a 2- year spread perspective, EUR/GBP has been helped by a fall in the UK swap rate but we would not be surprised to see that fall in 2-year yields reverse quickly."