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15 May 2014
GBP/USD weaker post-Carney - BTMU
FXStreet (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ, notes the weakness around the sterling after yesterday's UK data and BoE's QIR.
Key quotes
"The pound has remained modestly weaker following the release yesterday of the latest BoE Quarterly Inflation Report and UK employment report. The BoE’s QIR presented a slightly more dovish than expected outlook for monetary policy as the updated inflation profile remained broadly unchanged despite a further lowering of the unemployment rate projections implying that the BoE still remains comfortable that upside risks to inflation from the ongoing removal of economic slack is not yet material."
"The still subdued pace of average weekly earnings growth at just 1.7% provided further evidence yesterday that the BoE does not yet face immediate pressure to begin raising interest rates. The improvement in labour market conditions in the UK continues to remain robust with employment growing by an annual rate of 2.4% which is the fastest annual rate of growth since the summer of 1989."
"It supports the BoE’s view that the UK economy will expand robustly by 3.4% in 2014 and 2.9% in 2015. The strong cyclical performance of the UK economy should encourage the pound to strengthen further in the year ahead as the BoE moves to closer to raising rates which we still expect to begin in Q1 2015."
Key quotes
"The pound has remained modestly weaker following the release yesterday of the latest BoE Quarterly Inflation Report and UK employment report. The BoE’s QIR presented a slightly more dovish than expected outlook for monetary policy as the updated inflation profile remained broadly unchanged despite a further lowering of the unemployment rate projections implying that the BoE still remains comfortable that upside risks to inflation from the ongoing removal of economic slack is not yet material."
"The still subdued pace of average weekly earnings growth at just 1.7% provided further evidence yesterday that the BoE does not yet face immediate pressure to begin raising interest rates. The improvement in labour market conditions in the UK continues to remain robust with employment growing by an annual rate of 2.4% which is the fastest annual rate of growth since the summer of 1989."
"It supports the BoE’s view that the UK economy will expand robustly by 3.4% in 2014 and 2.9% in 2015. The strong cyclical performance of the UK economy should encourage the pound to strengthen further in the year ahead as the BoE moves to closer to raising rates which we still expect to begin in Q1 2015."