Sterling Faces Falls on Potential BOE Repricing, Fiscal Jitters
Dow Jones08-05 21:04
1304 GMT - Sterling could come under pressure as the summer draws to a close, Rabobank's Jane Foley says in a note. Markets could price out interest-rate rises for the Bank of England and grow nervous ahead of the autumn budget under new Prime Minister Andy Burnham, she says. "While the budget threatens to cast a shadow over the pound post summer, it remains RaboResearch's view that the market has overestimated the risk of BOE rate hikes." The market has reduced expectations for a rate rise by year-end following a recent pullback in oil prices but this is still too aggressive, she says. The euro trades flat at 0.8571 pounds and Rabobank favors buying it on any falls to 0.8550.
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