GBP/EUR took a knock after Sterling’s resurgence today. I think there is a strong possibilty this may have been caused by the BOE’s (Bank of England) Andy Haldane. He suggested theMPC (Monetary Policy Commitee) still has options including QE and rate cuts and that risks to inflation in UK and overseas may be skewed to the downside.
He also stated he does not see an immediate case to change interest rates and chances of a rate cut or rise are evenly balanced. He indictaed thatpolicy needs to stand ready to to move in either direction to achieve 2% inflation target.
I still feel it is a very good time to purchase Euros as we sit close to that 7yr high, I feel Sterling weakness is highly likely in the coming weeks.
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