British Pound Direction Contingent on Bank of England Minutes

The British Pound found strong support in the latter half of the week, after declining immensely on Monday, and nearly dropping another 200-pips on Tuesday, on a worse-than-expected price data print which indicated that inflationary pressures were easing. Similarly, in line with the Bank of England’s consensus that it would leave rates on hold for an extended period in order to boost economic growth, rate hike expectations fell sharply, suggesting that, on pure interest rate differentials, the Sterling could come under heavy pressure in the coming weeks.