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BofA: The Message Is Getting Through

GBP

BofA note that GBP TWI is trading “towards the top end of the "reset range" as the pound returns to basics, with UK rates a significant driver once more.”

  • “The back-up in 1Y1Y SONIA has been driven by the improvement in UK data surprises. Whilst encouraging, we note that expectations around UK data have been weak.”
  • BofA also believe that “the BoE has been at pains to stress to markets that UK rate pricing for cuts in 2024 is misplaced.”
  • “The macro outlook will likely remain poor in 2024. High inflation and anaemic growth do not provide the basis for a strong currency.”
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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