Sept 18 (Reuters) - Sterling bulls hope the Bank of England decides to keep interest rates unchanged on Thursday, even if the Federal Reserve opts to deliver an aggressive 50 basis point rate cut at 1800 GMT.
If the BoE holds its horses after the Fed lets them run free, it might propel GBP/USD towards 1.35 - a level at which it last traded in February 2022.
Only one member of the Times MPC, Steve Robson, advocates a BoE rate reduction this week. Markets see a one-in-four chance of a cut.
GBP/USD rose towards 1.32 on Wednesday after UK August core and services CPI data prints came in at 3.6% YY and 5.6% YY respectively, fractionally higher than the Reuters poll forecasts. Headline CPI was 2.2% YY, as forecast.
CFTC data on FX positioning showed the net GBP long fell 16% to 90,288 contracts in the week ended Sept. 10, after rising in the prior three weeks.
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(Robert Howard is a Reuters market analyst. The views expressed are his own)
((robert.howard@thomsonreuters.com))
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