Exchange rate ‘unreasonably strong’ – BoE’s G.Vlieghe

FXStreet (Edinburgh) - Recently appointed BoE MPC member Gertjan Vlieghe argued that economic risks in the UK remains tilted to the downside, stressing at the same time the ‘unreasonably strong’ level of the exchange rate.

Furthermore, Vlieghe has stated that the next move in interest rates is likely ‘to be up than down’, adding at the same time that the effectiveness of QE has decreased over time.

GBP/USD remains on the negative ground around 1.5250, coming down from the vicinity of the 1.5400 handle posted in early trade.