GBP: Extending rebound ahead of BoE policy meeting – MUFG

The Pound has continued to strengthen ahead of the Bank of England's policy meeting. EUR/GBP has broken below support from the 200-day moving average at around 0.8650. This strengthening is attributed to reduced UK fiscal and political risks and signs of growth momentum in the UK, notes Lee Hardman, MUFG Senior Currency Analyst.

Pound strengthens before BoE meeting

"The pound has continued to strengthen at the start of this week ahead of tomorrow’s BoE policy meeting."

"Stronger growth momentum has encouraged market participants to push back the timing of the next BoE rate cut."

"We continue to expect the BoE to lower rates further this year but recently pushed back our forecast for the timing of the next BoE rate cut from March to April."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)