All eyes on Thursday’s BoE Interest Rate Decision and Potential Stimulus Package…
Like the British weather the Pound has seen a fair few ups and downs recently partially recovering some of the ground lost to the Brexit vote and then losing it again on the likes of Purchase Index Data release and poor manufacturing data. I believe this is just the beginning of a tug of war as data releases play against Brexit expectations, which are proving difficult to predict accurately.
The big news this week will be the Bank of England’s Interest rate decision on Thursday. Should they choose to cut the rate to 0.25 expect a drop in the Pounds value against most major currencies especially the Euro and US Dollar. At the same time if Mark Carney and his committee introduce a fresh round of Quantitative easing this will see further downward pressure on the Pound.
Now with both of these things to consider and further Brexit shocks down the road in the short term I feel the Pound is unlikely to gain in strength and could see GBPEURO levels dropping into the low teens.
Considering this if you have a holiday requirement in the next week I would be looking to act before Thursday.
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