GBP – Sterling edged up on Wednesday, hitting a 23-month high against EUR after higher-than-expected inflation data added to pressure on the Bank of England to raise interest rates next month.
Commenting on GBP price action and its outlook. Bank of America notes that “an awful lot is priced for the BoE cycle – yet we think it is too early to ‘fade’ the GBP rally on a fully-priced BoE cycle – just in the same way it is too early to fade the dollar rally.”
CAD – The Canadian dollar edged higher on Wednesday as oil prices rose and CPI data showed a 30-year high for inflation, supporting the growing argument for the BoC to hike interest rates as soon as next week.
Commenting on the report, one of TD Securities chief analysts noted that “the increase in the core metrics does catch my eye… This probably does incrementally ratchet up pressure on the BoC to start lifting rates sooner than later.”
Commenting on GBP price action and its outlook. Bank of America notes that “an awful lot is priced for the BoE cycle – yet we think it is too early to ‘fade’ the GBP rally on a fully-priced BoE cycle – just in the same way it is too early to fade the dollar rally.”
CAD – The Canadian dollar edged higher on Wednesday as oil prices rose and CPI data showed a 30-year high for inflation, supporting the growing argument for the BoC to hike interest rates as soon as next week.
Commenting on the report, one of TD Securities chief analysts noted that “the increase in the core metrics does catch my eye… This probably does incrementally ratchet up pressure on the BoC to start lifting rates sooner than later.”