On this morning’s news that the Bank of England would step up its quantitative easing:
RBS: Thursday’s BoE decision/GBP has a ‘buy the rumour, sell the fact’ feel to it.
Beyond today, I continue to see EUR/GBP significantly higher over the coming three months. EUR/USD is also likely to trend higher, so cable is unlikely to be that interest during this period. I’m inclined to fade the post-FOMC risk sell-off, as the Fed has essentially backstopped risk. Buy AUD/USD, sell USD/CAD.