Swedish rate cut is boost for BoE doves, GBP bears
May 8 (Reuters) - Sterling bears have a spring in their step following Sweden's interest rate reduction on Wednesday, which has got doves cooing for the Bank of England to follow suit next month.
Although a majority of economists expected the Riksbank to cut rates, it was by no means a certainty.
Markets currently see a 44% chance of the BoE cutting rates in June. This probability should rise if the BoE delivers a more dovish than expected hold on Thursday at 1100 GMT, to the detriment of sterling. 0#BOEWATCH
Two members of the Times Shadow MPC recommend that the BoE reduces rates this week. On the actual BoE Monetary Policy Committee, Swati Dhingra is certain to vote for a rate cut on Thursday, and might be joined be Dave Ramsden.
CFTC data on FX positioning showed the net GBP short rose to 28,990 contracts in the week ended April 30, its highest level since January 2023, after the largest increase in bets against the pound in a single week since 2007 the preceding week.
Related column/comment: nL8N3HA91U nL1N3H60CV
For more click on FXBUZ
GBPUSD https://tmsnrt.rs/3y6Vrhg
(Robert Howard is a Reuters market analyst. The views expressed are his own)
</body></html>Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
