lundi 30 mars 2015
Pound Set for Worst Month in 2 Years as Election Campaign Begin
Posted on 05:20 by nice news
As the Bank of England goes quiet and the U.K. parliament is dissolved, the pound is heading for its worst month against the dollar in two years on the first day of the election campaign.
With 38 days to go before the vote and polls suggesting there’ll be no clear winner, a gauge of volatility on the U.K. currency was near the highest since September 2011. Central bank policy makers entered a pre-election purdah on Monday after comments last week showed officials were divided on the outlook for inflation. They had also warned earlier in the month that if the pound continued to rise it could increase the chance that low consumer-price growth will persist.
“In the absence of any BOE rhetoric for the next five weeks, the focus will squarely be on the general election,” said Kamal Sharma, senior Group-of-10 currency strategist at Bank of America Merrill Lynch in London. “It’s been a complete turnaround in the fortunes of sterling within the space of a month, largely driven by the weakness in data
With 38 days to go before the vote and polls suggesting there’ll be no clear winner, a gauge of volatility on the U.K. currency was near the highest since September 2011. Central bank policy makers entered a pre-election purdah on Monday after comments last week showed officials were divided on the outlook for inflation. They had also warned earlier in the month that if the pound continued to rise it could increase the chance that low consumer-price growth will persist.
“In the absence of any BOE rhetoric for the next five weeks, the focus will squarely be on the general election,” said Kamal Sharma, senior Group-of-10 currency strategist at Bank of America Merrill Lynch in London. “It’s been a complete turnaround in the fortunes of sterling within the space of a month, largely driven by the weakness in data
Pound Set for Worst Month in 2 Years as Election Campaign Begin
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