The BOE inflation report and subseqent comments from BOE Governor King have left the door open to the possiblity of further QE down the road. Those who thought QE was going to be paused, or maybe even concluded, have been given food for thought.
Also traders will have noted King’s comment that weaker sterling will help exports.
The combination has pressured sterling, cable giving up over a full cent in double-quick order, presently at 1.6635. Technical support 1.6600/10.
