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The BoE is broadly expected to maintain its bank rate at the historical low of 0.50%. Of course, the delay in Fed’s normalisation plans will not be directly mentioned, yet cold winds from China and the slowing signs in economic recovery will certainly keep the MPC members from sailing the open sea.
Still, the pound trades above its 200-day MA level (circa 1.5320), a move that has been driven by SAB rumours and the better-than-expected industrial data yesterday. Even if the SAB Miller is not happening for the time being, the positive momentum in pound could well pave the way to 1.5490/1.5500 against the US dollar and down to 0.7280/0.7250 against the euro.