Forex Flash: MPC on hold, GDP ready to fall again - Societe Generale

Kit Juckes, Global Head of Currency Strategy at Societe Generale notes that the MPC yesterday refrained from further easing but there has been enough noise to know that additional measure are likely.

Further, he has also heard enough to know that a weaker pound is favoured by both the MPC and the Government. He writes, “No matter that the negatives (falling household incomes) will surely outweigh the positives (improved profit margins for exporters). This is the policy and it will take GBP/USD to 1.40 next.”