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Pound consolidates near dollar YTD lows as BoE outlook stays hawkish

MUFG said the Bank of England staff upgraded Q3 forecasts even as the pound remains near year-to-date lows versus the dollar.

Reported · Written up by our desk · Major Pairs

FXStreet, citing MUFG commentary by Lee Hardman, said the pound is consolidating near year-to-date lows against the US dollar despite resilient UK growth.

MUFG noted that UK GDP readings for Q1 and Q2 were revised higher, and that Bank of England staff upgraded Q3 forecasts.

The analysis also pointed to hawkish comments from Bank of England officials supporting expectations for rate hikes, even as political signals raise the prospect of a future reverse-Brexit trade that could affect the pound.

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