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5 Jul 2013
Flash: GBP/USD eyes BoE later this month – Investec
FXstreet.com (New York) - The GBP/USD finally found some friends yesterday and held, a small rally higher after a fortnight of sustained pressure, notes Lee McDarby, Corporate Treasury at Investec.
The GBP can be grateful for a very strong PMI figure yesterday morning as services came in at the strongest reading since March 2011, and almost 9 points higher than the Euro area services PMI, which helped the pound gain 1% against the Euro. Mark Carney’s first meeting as the main man of the Monetary Policy Committee culminated at midday with no change expected as the outcome.
According to McDarby, “We will have to wait for the publication of the minutes later this month despite some wild rumors that the no change decision could be accompanied by a statement from the new boss. The Investec economics team still believes that we will see some movement to quantitative easing in August, although the sturdy PMI data released this week may ultimately delay any potential action.”
The GBP can be grateful for a very strong PMI figure yesterday morning as services came in at the strongest reading since March 2011, and almost 9 points higher than the Euro area services PMI, which helped the pound gain 1% against the Euro. Mark Carney’s first meeting as the main man of the Monetary Policy Committee culminated at midday with no change expected as the outcome.
According to McDarby, “We will have to wait for the publication of the minutes later this month despite some wild rumors that the no change decision could be accompanied by a statement from the new boss. The Investec economics team still believes that we will see some movement to quantitative easing in August, although the sturdy PMI data released this week may ultimately delay any potential action.”