Analysts at TDS are looking for virtually no change in tone from the Bank of England today.
“There has been little data to chew on since their November rate hike meeting, and the MPC seems comfortable standing to the side while the Brexit sideshow progresses.”
“FX Strategy: We do not expect the MPC to produce a big reaction in sterling. With an uptick in the UK’s macro landscape offset by renewed Brexit concerns, the December BoE decision is unlikely to change this dynamic. Positive developments in negotiations could see EURGBP break below key support just above 0.8730.”
“Rates Strategy: Market reaction to next week’s BoE meeting should be fairly muted. From a medium term perspective, we continue to hold a steepening bias for the front-end and the Gilt curve.”