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18 Mar 2013
Forex Flash: UK commands market attention this week - BBH
FXstreet.com (Barcelona) - Brown Brothers Harriman analysts believe that the UK will command the markets attention this week.
They feel that Tuesday´s CPI is a warm up before the midweek flurry of the employment report, BOE minutes and Chancellor Osborne's budget. Further they add that they know that the BOE to did not resume the gilt purchase program, but they don't know the vote. They write. “We suspect that Governor King was again joined by Fisher and Miles, as he was in February, in favor of new gilt purchases. If a fourth member joined, the market will conclude the move will likely take place in April. Some observers suspect that given the poor data, the IMF and Liberal Democrat calls to ease up on the austerity drive will get the Tory government to capitulate. We think this is a mis-reading of UK politics and does not appreciate the political capital the Cameron government has invested in its current policies. The UK will continue to pursue a course of tight fiscal policy and loose monetary policy.”
They feel that Tuesday´s CPI is a warm up before the midweek flurry of the employment report, BOE minutes and Chancellor Osborne's budget. Further they add that they know that the BOE to did not resume the gilt purchase program, but they don't know the vote. They write. “We suspect that Governor King was again joined by Fisher and Miles, as he was in February, in favor of new gilt purchases. If a fourth member joined, the market will conclude the move will likely take place in April. Some observers suspect that given the poor data, the IMF and Liberal Democrat calls to ease up on the austerity drive will get the Tory government to capitulate. We think this is a mis-reading of UK politics and does not appreciate the political capital the Cameron government has invested in its current policies. The UK will continue to pursue a course of tight fiscal policy and loose monetary policy.”