Back
22 May 2013
Flash: As for the UK data...Yuck! - Societe Generale
FXstreet.com (Barcelona) - Kit Juckes, Global Head of Currency Strategy at Societe Generale notes that the MPC Minutes revealed that despite better economic data and an extension to the FLS, the vote for increase asset purchases remained tight at 6-3.
He feels that the hurdle for further easing still seems low and the MPC was a bit worried about the drag from European re-balancing and fearful of further GBP strength. He writes, “We’ve had poor growth numbers and lower inflation since then, and the realisation that the MPCs bias is dovish can put sterling at any rate, under continued pressure. Gilts, of course, are merrily out-performing. Very poor retail sales, and encouraging public sector borrowing data, do that for a bond market!”
He feels that the hurdle for further easing still seems low and the MPC was a bit worried about the drag from European re-balancing and fearful of further GBP strength. He writes, “We’ve had poor growth numbers and lower inflation since then, and the realisation that the MPCs bias is dovish can put sterling at any rate, under continued pressure. Gilts, of course, are merrily out-performing. Very poor retail sales, and encouraging public sector borrowing data, do that for a bond market!”