The British Pound bears have gained back control, as rumors surrounding a looming rate hike by the Bank of England (BOE) stopped after a disappointing Fed on Wednesday.
Looking to the BOE rate decision, the CME BOE watch tool shows a 55% likelihood of a rate lift-off at the central bank’s November meeting. Even though it could be a close call for the BOE policymakers as they continue to assess the inflation and Brexit risks.
On the Brexit front, tensions continue to persist between the EU and the UK over the Northern Ireland protocol. The European Commission Vice President Frans Timmermans said it was “extremely well-known in London” that the demand to ditch the European Court of Justice could not be met.
This comes after UK Brexit minister Lord Frost said that the ECJ should be replaced with an independent arbitration panel and that it can have no role in settling disputes in Northern Ireland, per the Independent.
In the meantime, the UK-French conflict over the post-Brexit fishing rights maintains to remain trouble for the pound. Traders now brace for the all-important BOE decision for the next direction in the currency pair. Brexit talks in Paris will also hog some attention alongside the US weekly jobless claims.
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