MUFG: Expectations of a Bank of England rate cut could hit the pound
According to Mars Finance, Derek Halpenny of Mitsubishi UFJ said that the prospect of the Bank of England cutting interest rates more than the market expected would hit the pound. The market's expectations for rate cuts this year appear "too cautious", and the pound may underperform non-US dollar currencies later this year.
The pound was the worst performing G10 currency in the previous trading day. The UK's December manufacturing PMI was unexpectedly revised down, and natural gas prices rose sharply, which mildly increased expectations of a rate cut in February.
