Derek Halpenny, European Head of GMR at MUFG, suggests that Sir Jon Cunliffe was pretty clear in his view that the current market pricing implying no rate hike through to 2019 and/or the prospect of a rate cut are not justified by current macro-economic data. Key Quotes “He concluded that market participants had become very gloomy about the global economy but that prospects were still quite good for the UK economy. Martin Weale also spoke in the same way expressing surprise if the BOE had to wait as long as markets currently assume. There has been no response to the comments and the likelihood is that global financial market conditions will continue to shape expectations over the short-term. The key event that will be in focus today is of course the probable announcement of a deal between the EU and UK to put to the UK people in a referendum, probably on 23rd June. We have already seen the leaked version, which didn’t really have anything new. Nonetheless, whatever the contents, we should expect a slating from the ‘Leave’ side over the weekend. Divisions within the Tory party will become more evident over the weekend and concerns over ‘Brexit’ may spark a period of pound under-performance again.” For more information, read our latest forex news.