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22 May 2013
Flash: BoE dovish – TD Securities
FXstreet.com (London) - Jacqui Douglas, Senior Global Strategist, Rates and FX Research at TD Securities said that with today’s dovish reports, we saw GBP/USD slip below 1.51, reaching its lowest level since early April. Adding, that GBP is now battling AUD and NZD for worst-performing G10 currencies on the day.
The team noted that Gilts are outperforming bunds and treasuries again today, with the BoE minutes leaving the door open to further QE at some point down the road. Jacqui Douglas suggested that the next big market driver will be Fed Chairman Bernanke’s testimony at 3pm BST, which will either but the brakes on all the tapering talk, or will give treasury yields the green light to start running higher again.
The team noted that Gilts are outperforming bunds and treasuries again today, with the BoE minutes leaving the door open to further QE at some point down the road. Jacqui Douglas suggested that the next big market driver will be Fed Chairman Bernanke’s testimony at 3pm BST, which will either but the brakes on all the tapering talk, or will give treasury yields the green light to start running higher again.