9 Jul 2013
Flash: GBP poised for weakness – Investec
FXstreet.com (New York) - According to Lee McDarby, Corporate Treasury at Investec, “The GBP is still looking a little lost after the dovish statement that accompanied the Bank of England statement last Thursday confirmed to many that the new head of the Bank of England will commit to an expansive monetary policy going forward.”
Moreover, this policy is priced in to start with an increase to the asset purchase program next month. The pound has had a very tough few days despite some extremely encouraging economic survey data earlier in the week. “We will be watching the housing figures and industrial and manufacturing figures tomorrow morning as this could provide the GBP with some short term solace after the market has placed the pound under so much pressure.” McDarby adds.
Moreover, this policy is priced in to start with an increase to the asset purchase program next month. The pound has had a very tough few days despite some extremely encouraging economic survey data earlier in the week. “We will be watching the housing figures and industrial and manufacturing figures tomorrow morning as this could provide the GBP with some short term solace after the market has placed the pound under so much pressure.” McDarby adds.