1 Aug 2013
Flash: Markets fixated on BoE and ECB decisions - BTMU
FXstreet.com (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ notes that market attention will switch to today’s BoE and ECB monetary policy meetings.
Key Quotes
“The pound has embarked upon a weakening trend in anticipation that the BoE will unveil a form of forward rate guidance alongside the release of their Quarterly Inflation Report on the 7th August.”
“No change in the BoE’s monetary policy stance is expected at today’s meeting although it is uncertain whether they will release a statement.”
“If a statement is released today it will likely be similar to the one at their last meeting stating higher UK rates are still not warranted by recent UK economic developments.”
“The ECB will also be under some pressure today to try to dampen upward pressure from euro-zone short rates and the euro while acknowledging further evidence of economic recovery.”
“Their vague commitment to maintain present or lower rates for an “extended” period may need strengthening or backed up by further easing should euro-zone short rates and the euro continue to rise as liquidity in the Eurosystem tightens in the 2H 2013.”
Key Quotes
“The pound has embarked upon a weakening trend in anticipation that the BoE will unveil a form of forward rate guidance alongside the release of their Quarterly Inflation Report on the 7th August.”
“No change in the BoE’s monetary policy stance is expected at today’s meeting although it is uncertain whether they will release a statement.”
“If a statement is released today it will likely be similar to the one at their last meeting stating higher UK rates are still not warranted by recent UK economic developments.”
“The ECB will also be under some pressure today to try to dampen upward pressure from euro-zone short rates and the euro while acknowledging further evidence of economic recovery.”
“Their vague commitment to maintain present or lower rates for an “extended” period may need strengthening or backed up by further easing should euro-zone short rates and the euro continue to rise as liquidity in the Eurosystem tightens in the 2H 2013.”