Cable having opened marginally firmer, has slipped back in early European trade, and now sits at 1.6590 , pretty much where it closed out Thursday in North America.
Seems to be a perception that yesterdays conservative £25 bln extension of QE signals we’re about to see at least a pause in the programme.
In a report in the WSJ the writer says “Bank officials may be trying to wean the market off the extraordinary stimulus program, whose scope is comparable to the effort by the US Federal Reserve.”
In The Telegraph there’s an article headlined “Bank of England signals the end is nigh for quantitative easing”
This thinking is what is supporting sterling/cable at the present time. Can’t say I’m overly convinced that we’re going to see either a lengthy pause or that the end is necessarily nigh, but that’s just me. I’m still convinced the UK economy is in very poor shape indeed.
Talk of buy orders lined up down at 1.6550/60.
Not much in the way of data out today:
09:30 GMT: UK PPI for October. Input prices +1.5% m/m, -1.3% y/y. Output prices +0.3% m/m, +1.9% y/y.
