GBP/USD: BoE can be hands-off for now - Scotiabank

Analysts at Scotiabank explained fundamentals behind GBP/USD's price.

Key Quotes:

"UK house prices rose 0.9% this month, according to the Rightmove survey, pulling y/y gains up to 4.2% (from 4.0% in August).

Prices appear to be steadying after slowing sharply ahead of, and following, the June Brexit decision.

BoE MPC member Broadbent reiterated the central bank’s view that a weaker GBP will help cushion the UK economy from the shock of Brexit.

We think the BoE is taking a hands off approach to the currency and will only show any real concern if markets become disorderly or if domestic inflation picks up markedly."