Sterling Vulnerable to Further Falls After BOE Rate Decision -- Market Talk

Dow Jones
06 Feb

1421 GMT - Sterling looks at risk of further falls after the Bank of England signalled less caution over cutting interest rates, TD Securities analysts say in a note. The BOE delivered a highly anticipated 25 basis-point rate cut Thursday but two members surprisingly backed a larger 50 basis-point reduction. Investors have now trimmed long sterling positions--bets on the currency rising--, the analysts say. However, sterling positioning remains "relatively optimistic" compared to non-dollar peers. This leaves it vulnerable to further declines. "Moreover, while U.K. does not seem to be in the obvious line of fire for Trump tariffs and can outperform the euro, it is a risk-sensitive currency and heightened uncertainty is likely to weigh on it versus the dollar." (renae.dyer@wsj.com)

 

(END) Dow Jones Newswires

February 06, 2025 09:21 ET (14:21 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10