6 Aug 2015
Stay long Sterling heading into BoE - BNPP
FXStreet (Bali) - BNP Paribas recommends long GBP exposure heading into Thursday's Bank of England (BoE) meeting.
Key Quotes
"We recommend long GBP exposure heading into this week's Bank of England (BoE) meeting. This will be the first meeting at which the BOE releases minutes and its quarterly inflation report at the same time as the policy decision."
"We expect the event to be a broadly-hawkish affair, with a real possibility of more than two dissents in favour of a rate hike."
"With rates markets pricing in less than an 80% probability of a 25bp hike by February 2016, we think the market could be caught off guard and see scope for UK front-end yields to adjust higher, in turn supporting the GBP."
Key Quotes
"We recommend long GBP exposure heading into this week's Bank of England (BoE) meeting. This will be the first meeting at which the BOE releases minutes and its quarterly inflation report at the same time as the policy decision."
"We expect the event to be a broadly-hawkish affair, with a real possibility of more than two dissents in favour of a rate hike."
"With rates markets pricing in less than an 80% probability of a 25bp hike by February 2016, we think the market could be caught off guard and see scope for UK front-end yields to adjust higher, in turn supporting the GBP."