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Forex Flash: BoE not expected to alter policy despite pressure – Deutsche Bank

Later today in the UK, “we expect no change in policy from the BoE today (as does Bloomberg consensus), however we underscore that the risks to this view are high. The BoE minutes from the February meeting showed that three of the nine-strong MPC Committee – including the Governor himself – voted for additional asset purchases meaning just two other MPC members are needed to join King, Fisher & Miles for further QE to be sanctioned.” notes Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank.

Interestingly the FT is carrying a story this morning suggesting that the UK budget (March 20) will include the Chancellor overhauling the BoE remit. The paper suggests that a move to a FED style dual mandate or some kind of nominal economy target rather than just an inflation one might be being considered. This might excite the pound bears again after a few days of stability. Central banking is seemingly changing and is slowly becoming less independent around the world.

Forex: EUR/USD eases after Germany factory orders

The EUR/USD went as high as 1.3044 on the improving yields seen on Spain and France's bond auction, but failed to extend higher. At the moment of writing, the pair is retracing the European morning gains and approaching the 1.3000 mark after the release of Germany factory orders.
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UK BoE Interest Rate stays unchanged at 0.5% in Mar 7

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