- No reason for BOE to move rates in lockstep with either Fed or ECB
Cable is up from around 1.2355 to 1.2385 on the day now as Pill is trying to temper with market expectations. The BOE had previously said they were comfortable with markets pricing in a move in August. However, traders had recently pushed to test that narrative by pricing in a June move - which is now at near 50% (it was 62% before the PMI data today). I reckon we're seeing a bit of a walk back in that regard now.
