plus November"s awful UK manufacturing sector PMI, helped depress cable to a six-day low of 1.5008 during the European morning. The UK bank is reportedly working a GBP 2bn sell order.
The risk of a UK Bank Rate cut greater than 100bp on Thursday has risen on the back of the mfg PMI shocker. Bank Rate was cut by 150bp to 3.0% last month.
US equity futures weakness is also weighing on GBP/USD. The USD is perceived to be a safer-haven than the pound, so tends to benefit when stock prices fall (and vice-versa). 1.5283-1.5397 was today"s Asian session range.
European Commission president Barroso believes that the UK is "closer than ever before" to joining the euro (BBC website). EUR/GBP leapt to a five-day high of 0.8426 through the London morning, having traded a range of 0.8245-0.8274 through today"s Sydney session. 0.8225 was Friday"s late NY session 16-day low.
One member of the "Shadow" MPC, Patrick Minford, advocates another 150bp Bank Rate cut this week, to 1.5% (Sunday Times). Bank Rate has never been lower than 2.0% since the BoE was born in 1694.
The risk of a UK Bank Rate cut greater than 100bp on Thursday has risen on the back of the mfg PMI shocker. Bank Rate was cut by 150bp to 3.0% last month.
US equity futures weakness is also weighing on GBP/USD. The USD is perceived to be a safer-haven than the pound, so tends to benefit when stock prices fall (and vice-versa). 1.5283-1.5397 was today"s Asian session range.
European Commission president Barroso believes that the UK is "closer than ever before" to joining the euro (BBC website). EUR/GBP leapt to a five-day high of 0.8426 through the London morning, having traded a range of 0.8245-0.8274 through today"s Sydney session. 0.8225 was Friday"s late NY session 16-day low.
One member of the "Shadow" MPC, Patrick Minford, advocates another 150bp Bank Rate cut this week, to 1.5% (Sunday Times). Bank Rate has never been lower than 2.0% since the BoE was born in 1694.
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