UK: Anticipation of BOE easing next month weighing on sterling - BBH

Research Team at BBH, suggests that the anticipation of BOE easing next month was weighing on sterling, pushing it to $1.3065 when a couple of less dovish (than Governor Carney and the MPC minutes) talked about the need for more real sector data before agreeing to ease policy.  

Key Quotes

“The comments, coupled with favorable pre-referendum data helped sterling recover two cents.  Then came the terrible flash PMIs and sterling dropped back to the week's lows.  Those lows are important from a technical point of view.  They correspond to a 61.8% retracement of the recovery from the July 6 low near $1.28.  A convincing break of last week lows would suggest the risk of a retest on the multi-year lows.”