FXStreet (Guatemala) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman noted that the Bank of England released its inflation report, which helped drive sterling to a 2-month low.



Key Quotes



"The BOE raised its 2014 GDP forecast to 3.5% from 3.4% previously."



"As expected, the bank cuts its wage growth forecast. For Q4, the forecast was cut to 1.25% from 2.5%."



"Carney also emphasized that the MPC does not have a target for wage growth. The report also noted that the spare capacity in the economy is being reduced faster than they expected, now seen at 1%, compared with 1.25% previously. Yields on short sterling futures have fallen as much as 8 bp for contracts expiring in late 2015 and 5 bp for the December 2014 contract, as markets price out some of the risk rate hikes this year."



You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    GBP/USD stays near daily lows after US data

  2. Forex News

    GBP/USD appears supported around 1.5540/60 – BBH

  3. Forex News

    GBP/USD drops below 1.5600

  4. Forex News

    GBP/USD negative below 1.5674/1.5738 – Commerzbank

  5. Forex News

    GBP/USD meanders near lows around 1.5615, shrugs off UK data

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!