Nor exactly going to please the GBP bulls

GBPUSD testing 1.5100 support, again

  • growth reinforced by macroprudential measures
  • could use mon pol to address macroprudential risks

GBPUSD has posted new session lows of 1.5101 but bids holding up for the moment

  • global equilibrium interest rates are likely to stay below historic averages for a considerable period of time
  • real equilibrium interest rate in UK has turned positive and likely to rise further as headwinds dissipate
  • no need for negative interest rates

That last comment is hardly surprising

Kristin Forbes the bull on the team says:

  • next move in interest rates will be up
  • UK is seeing a solid recovery
  • evidence that QE has become less effective is very weak and mixed

GBPUSD finding a little comfort in the other side of the argument and currently 1.5118 again