Excel Currencies Blog

BoE Chief Economist Huw Pill expects to see the first rate cut next summer..

Don't say i didn't warn you folks..

£-€ has fallen 0.5% since my last report Monday mid-day and £-$ has dropped 1.2% over the same period of time. I mentioned that GBP's surge was an unexpected and rare one and that it was likely the USD was in 'overbought territory', which has proved to be the case. 

Well done to those that acted on the surprise jump and for those that didn't, no need to bet yourselves up, as it was completely out of the blue and not warranted in my opinion anyway. So for now at least, it's business as usual with GBP v EUR flat and GBP v USD back under pressure.

Monday night, BoE Chief Economist Huw Pill told the public in an online Q&A that interest rates would have to stay at or near current levels until the middle of next year. This was the first significant admission that lower interest rates lie ahead with a rough timescale on when we will see them. As the US/USD experienced last week, this is consumer positive, but currency negative and a reason for £ weakness so far this week.