The pound’s fortunes are being dictated by Brexit and recent optimism over a deal could lead to a more hawkish-sounding Bank of England driving the currency higher. Market bets on further BOE policy tightening have receded in recent weeks following August’s quarter-point interest-rate increase, with the next hike not fully priced in until the end of 2019. While this could signal a non-event at Thursday’s BOE announcement for sterling and gilts, there is a risk that current market thinking could prove too dovish. “The stronger data flow supports the BOE’s decision to tighten policy last month, and could prompt the BOE ... (full story)