Short Sterling strip: defensive tone ahead of UK CPI/TSC hearing

No real shock to see 3 month contracts treading cautiously, and largely on a marginally softer footing in the run up to inflation data that could see the headline y/y metric touch or even surpass the top of the BoE’s tolerance band. This could underscore expectations that the MPC will respond with a rate hike as soon as November, and perhaps prompt Governor Carney and fellow members to ‘confirm’ the likelihood of tightening at the TSC. Moreover, UK STIRs may be seeing a degree of spill-over from US counterparts amidst reports that Taylor impressed Trump during his interview for Fed chair.

17 Oct 2017 - 07:55- - Source: RANsquawk

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