Bank of England Meeting a non-event, Door open for GBP to Head Lower

May 13, 2016 (Tempus, Inc.) – The British pound weakened overnight, giving back its modest gains from yesterday’s session.  The Bank of England’s “Super Thursday” came and went without much volatility.

The central bank kept its interest rates unchanged.  However, the press conference following the decision showed that all of monetary policy makers expressed concerns over the possibility of a British exit from the European Union.  BoE head Mark Carney maintained that a “Brexit” is the biggest domestic risk facing the economy.

The referendum on whether the United Kingdom remains apart of Europe is slated for June 23rd.  While a “Brexit” remains unlikely, we expect heightened volatility over the next six months as the “Cable” may trade in response to headlines and poll numbers.

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