Oct 11 (Reuters) – Sterling bulls should be aware that the Bank of England remains on course to reduce interest rates next month, after Friday’s UK gross domestic product for August matched the consensus forecast.

Britain’s economic output grew by 0.2% in August – a month which opened with a 25 basis point Bank of England rate cut – after stagnating in June and July.

BoE Governor Andrew Bailey looks certain to vote for another quarter-point cut in November, given his dovish guidance last week, and is likely to be joined by at least four of the other eight Monetary Policy Committee members (as per August).

CFTC data on FX positioning, due at 1930 GMT, will show by how much the net GBP long shrank in the week ended Oct. 8 – a period which encompassed Bailey’s dovish steer, after rising to a four-week high of 93,765 contracts in the week ended Oct. 1.

The key UK event risk before the Nov. 7 BoE rate decision is the Oct. 30 budget announcement from finance minister Rachel Reeves, her first since the Labour Party’s landslide election victory on July 4.

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