Some analysis by my dear friend, ForexLive contributor and all-round gent, Arno Venter...
GBP post-Bailey's comments
LINK - Bank of England Governor talks “bit more aggressive” interest rate cuts
BoE comments from today playing catch up with the overall trend in economic data surprises over the past few weeks?
Sizeable reaction in Sterling compared to the size in rate cut expectations for the BoE after Bailey's comments.
About 3 basis points of easing added for the Nov meeting, think the size of the reaction might be more positioning related.
Tracking net commercial positioning as a percentage of open interest, the Pound was the third biggest long over the past 52 weeks.
The reaction today (despite a relatively small rate repricing) arguably reflects positioning unwinds more than anything else.
