Forex Flash: BoE's King switched from talking down to comfort with GBP price – TD Securities

FXstreet.com (Barcelona) - BoE's King changed his speech after talking down the currency for the past couple of quarters and “now appears comfortable with where the currency is”. “This has helped stabilize GBPUSD and at the time of writing it was trading around 1.5150 following lows of 1.4832 earlier this week”, wrote analyst Tim Davis.

TD Securities analysts “believe that his aim is likely to reduce volatility and if the pound depreciates too much, then inflation is likely to pick up even more—something that is not top of the BoE’s wish list”. In regard to gilt issuance, they expect a higher one next year of £163.3bn to be announced against consensus expectations of £159bn.