MUFG on why GBP should fall (spoiler - hard to see 3 Bank of England rate hikes ahead)

Via a note from Mitsubishi UFJ Financial Group Inc (MUFG) on sterling. MUFG see prospects for a fall saying they view expectations for impending Bank of England Bank of England The Bank of England (BoE) functions as the United Kingdom’s central bank and is one of the key drivers of monetary policy in Europe. As one of the world’s oldest central banks and established in 1694, the BoE is owned by the British government. Its central mandate involves maintaining and targeting interest rates while using other tools to help either stimulate or contract the economy. Moreover, the BoE is responsible for producing the UK’s bank notes as well as supervising key bank payment sy The Bank of England (BoE) functions as the United Kingdom’s central bank and is one of the key drivers of monetary policy in Europe. As one of the world’s oldest central banks and established in 1694, the BoE is owned by the British government. Its central mandate involves maintaining and targeting interest rates while using other tools to help either stimulate or contract the economy. Moreover, the BoE is responsible for producing the UK’s bank notes as well as supervising key bank payment sy Read this Term rate hikes as over done. MUFG say to watch data flow this month, if weakness shows

• It is hard to see what the BOE would cite as justification for one further hike let alone three hikes as priced in the market
• March data for the U.K. is crucial now

Weak data would be a reason for the BoE to pause on hikes. This'd trigger a ratcheting lower of analyst hawkish expectations and weigh on GPB at the margin.

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Any tech analyst folks out there want to comment on cable? The daily looks vulnerable as the clear up swing has shifted to sideways ..., down next?

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