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GBP remains weaker following more dovish BoE QIR – BTMU

FXStreet (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ comments on the pound continuing to remain weak following the release of BoE’s QIR which suggests the postponement of the rake hike delay till late next year.

Key Quotes

"The pound also continues to remain on a weaker footing following the release last week of the more dovish then expected BoE Quarterly Inflation Report which supported market expectations that the BoE will not begin to raise rates until late next year.”

“Short-term yields in the UK have fallen further since the release of the QIR with the implied yield on the December 2015 Short Sterling futures contract having declined by around 0.15 point over the last week."

"Chief Economist Haldane sounded even more dovish stating that “even in the UK, some measures of household inflation expectations have fallen slightly over the course of this year. Wearing my MPC hat, and with UK inflation already below target, this is something I am watching like a dove."

"The comments will reinforce the markets view that the BoE will not begin raising rates for the foreseeable future. MPC member Forbes will also be speaking later today."

LME inventory update

The daily inventory data released by the London Metal Exchange (LME) today showed a decline in the inventory levels of, Lead, Zinc, and Aluminium. Meanwhile, the data showed a rise in the inventory levels of Nickel and Copper.
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