Ryan had the run down of the Bank of England overnight: What has changed after the BOE's "Super Thursday"? ... Absolutely nothing
Comments from Paul Meggyesi, FX strategist at JP Morgan:
- BoE "seems in no overriding rush to raise rates:
- Likelihood that the BoE will only move on rates six months after the Fed
- Says the Fed to move in September, so the BoE in February
(OK, that's 5 months, not 6, but still ... you get the idea)
- Says "the strength of sterling is one of the factors that is keeping the nascent hawks on the MPC in their cage"
On GBP:
- The medium-term trend to a stronger sterling TWI remains intact
- Hikes are deferred, not removed
- GBP is vulnerable in the next few weeks both to a hangover from today's Bank of England news & the risk that next week's labour market data reveals a further softening in conditions (i.e.lower wages & higher unemployment rate)