FXStreet (Guatemala) - Jane Foley, Senior Currency Strategist at FXStreet
explained that the drop in the value of sterling this week has cemented its place as the worse performing developed world currency in the month to date.
"On the back of the dovish tone of BoE Carney at the presentation of the Quarterly Inflation Report investors have been scurrying to push back their forecasts of when the BoE may first start to hike rate amid accusations that Carney had misled them in previous speeches".
"We have continued to point resolutely to May 2015 for the first move. The consequence of this is that we were less surprised than the consensus by the dovish tone of the Governor this week"
"Carney this week repeated the warning that when rates do start to rise that these will be “gradual and limited” to ensure that the economy continues to be nurtured".