Analysts at Scotiabank explained that GBP is weak vs. the USD and underperforming all of the G10 currencies in response to Gov. Carney’s Mansion House speech as he called for patience in adjusting policy.
"The speech provided a clear contrast to the recent shift at the MPC as departing member Forbes was recently joined by an additional two members in calling for hikes at the last week’s meeting.
The Gov. has specifically spoken to the need to see other components of demand offsetting weaker consumption and for the broader response to Brexit. A reminder that Chief Economist Haldane speaks at 7am ET on Wednesday."
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