Probably not today, but the news that the BOE may lower the rate it pays on deposits will translate into greater lending and potentially faster UK growth down the road, and may be viewed as a GBP positive.The knee-jerk reaction has been “lower rates? Sell!”, but beware the snap-back.
Stops are eyed below 1.6450 in cable near-term, so punters who are looking for a place to get long should buy the dip below 1.6450, looking for a quick rebound. We trade now at 1.6473.
