The Bank currently holds 29% of government bonds from Britain freely traded, so there is a limit on the volume of purchases before they begin to complicate the lives of investors to debt markets. Pound started the week relatively mild, although recently it pushed up manufacturing PMI data for October. Nevertheless, the approaching meeting of the Bank of England on Thursday will keep investors on their toes, given that political action is more likely after the monthly report on inflation (November - one of them).
Monday, November 1, 2010
GBP: Pound rose on strong PMI, but the risks before the meeting of BOE may take over
The Bank currently holds 29% of government bonds from Britain freely traded, so there is a limit on the volume of purchases before they begin to complicate the lives of investors to debt markets. Pound started the week relatively mild, although recently it pushed up manufacturing PMI data for October. Nevertheless, the approaching meeting of the Bank of England on Thursday will keep investors on their toes, given that political action is more likely after the monthly report on inflation (November - one of them).