13 Jan 2016
Why has sterling performed so miserably? - BBH
FXStreet (Guatemala) - Analysts at Brown Brothers Harriman explained that sterling fell 4.25% from the high on December 28 to yesterday.
Key Quotes:
"It has been confined to yesterday's range today. After finishing below the lower Bollinger Band yesterday, it has moved back into the band today.
The Bank of England meets tomorrow. It is way to early to seriously look for a change in policy. At most, MPC member McCafferty may abandon his formal call (dissent) for an immediate rate hike. He has done this before. We suspect if the hawk does rejoin the majority, it has no more significance than his dissents.
Why has sterling performed so miserably? There are two main drivers. First, the economic data has disappointed and investors have been pushing out their expectations of the first hike. It has shifted from late-Q2 to late-Q4. Second, there is concern about a referendum on EU membership that could be held in May."
Key Quotes:
"It has been confined to yesterday's range today. After finishing below the lower Bollinger Band yesterday, it has moved back into the band today.
The Bank of England meets tomorrow. It is way to early to seriously look for a change in policy. At most, MPC member McCafferty may abandon his formal call (dissent) for an immediate rate hike. He has done this before. We suspect if the hawk does rejoin the majority, it has no more significance than his dissents.
Why has sterling performed so miserably? There are two main drivers. First, the economic data has disappointed and investors have been pushing out their expectations of the first hike. It has shifted from late-Q2 to late-Q4. Second, there is concern about a referendum on EU membership that could be held in May."