From Grace Cheng’s blog today:
The BOE quarterly inflation report prompted long profit-taking actions in the British Pound after the bank said it could comfortably allow interest rates to drop from their current level of 5.75% to around 5% without inflation getting out of control.
BOE governor King said he expects GDP growth to slow “sharply” in 2008 and the bank forecasts at least one rate cut in 2008.
“Further financial market fallout, either at home or overseas, poses the biggest downside risk to activity,” the report said.
EUR/GBP rallied to a 4-year high while GBP/USD fell 200 pips today to around 2.0660.
Fundamentally noisy. LOL. So now everyone should trade the market based on a rate hike due next year? That’s how analysts got their job, isnt it?
And market gurus wud say “buy rumors, sell facts”. Ya ya ya..
I’d prefer we just “Buy/Sell the FACT”. No rumors.
Only the FACT. No Noises.