UK: Autumn statement to be the highlight - BBH

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 23, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Delhi) – Research Team at BBH, suggests that the Autumn Statement is the highlight from the UK.

    Key Quotes

    “It is not expected to have much market impact. The 0.5% first estimate for Q3 GDP is subject to revision though we do not expect it to be changed. If it is, we would be over rather than under. Sterling's decline from the year's high near $1.60 at the start of H2 has coincided with a push back in interest rate expectations.”

    “The December 2016 short-sterling futures contract has seen a decline in the implied yields from 150 bp to 83 bp at the start of November. It finished last week near 90 bp. While we expect sterling to fare better than the euro, the gap between the Fed and the BOE appears to be considerably longer than many have been anticipating. This means that the forces of divergence will be a weight on cable.”
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