BoE likely to tighten policy before the Fed - RBS

FXStreet (Łódź) - The RBS team of analysts suggest that currency markets have not yet had sufficient time to re-price the reality that Bank of England is now very likely to run ahead of the Fed vis-à-vis first monetary tightening.

Key quotes

"The slightly weaker UK Retail Sales data does not change our view on this."

"Long cable and long GBP/SEK."

"Overall however FOMC is something risk markets digest most palatably given the CPI-related, Carney-read-across-related angst going into yesterday's Fed meeting – so cue some more low vol for longer related 'Mine, Everything' risk buying cross asset classes."