Sterling doesn't just have downside in the months ahead, there's more pain to come in the next nine days. The market is still pricing in an almost 20% chance of a BOE hike next week, those optimists are set to be sorely disappointed. Growth is anemic and the economy can't afford a rate rise triggering a property shock amidst the pressures from Brexit. And inflation readings don't warrant imminent action. Core CPI grew at the slowest annual pace in a year. Nothing justifies a BOE hike next week, so there's more rate support to be eroded from the pound.
Source: Bloomberg Pro Terminal
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