FX:GBPUSD British Pound/U.S. Dollar
Market expectations for BoE rate timing is building. Overnight swaps, short-sterling and Gilt yields have been showing a solidifying view of rate expectations more in line with what has been attributed to the Fed. We can see the impact of this speculation between the GBPUSD's advance and the iShares Index-Linked Gilt ETF's decline. Do you think the BoE will move in 2015?
Hi John i hear all the noise surrounding interest rate moves in the UK and US and fundamentally the arguments are getting stronger but believe central bankers are holding a double edge sword at the moment because they could kill off small signs recovery but on the other hand dont want to stop a runaway train if the momentum picks up personally think it would be wrong the new market environement thats being created needs to show signs of sustainable growth and recovery, to earlly to turn off the life support off. Take a step back and observe is it really necessary the challenges the world economies face are far greater than 25bp hike in rates and the timing of them - hence the double edge sword they are possibly doomed if they do or dont