8.1 C
Munich
Tuesday, May 18, 2021

Risks are skewed to the downside for the pound going into the BOE

Must read


BNP Paribas says a lot of positives have already been priced in for the pound

BOE

The firm argues that risks are skewed to the downside for sterling ahead of Thursday’s BOE meeting, despite expectations of a generally hawkish tone from the central bank.

Adding that a lot of positive news are already baked into the price and hawkish interpretations of the slowdown in QE purchases should be limited, with the BOE opting for a two-step taper process potentially seen as a more dovish action as well.

BNP also says that with investors holding long pound exposure, there is the propensity for positions to be squeezed but argues that any dip would be an opportunity to buy considering the medium-term bullish bias for the pound.



Source link

- Advertisement -spot_img

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisement -spot_img

Latest article