RBC Capital Markets explained that with the first UK rate hike not fully
discounted until early-2017, the hurdle is low for this week’s MPC
minutes and BoE speakers to be taken as GBP-positive.
Key Quotes:
"The near certainty of a December Fed hike the more measured ECB easing than expected should also help clear the way for a hike earlier than the market is priced for. We think last week’s EUR rally should be seen as a one-off rerating, not the start of trend, and we therefore take the 200pt rally in EUR/GBP as an opportunity to position for the downtrend quickly reestablishing itself."
Key Quotes:
"The near certainty of a December Fed hike the more measured ECB easing than expected should also help clear the way for a hike earlier than the market is priced for. We think last week’s EUR rally should be seen as a one-off rerating, not the start of trend, and we therefore take the 200pt rally in EUR/GBP as an opportunity to position for the downtrend quickly reestablishing itself."
