Last quote by Sam Lynton-Brown
Typically higher inflation has been bearish sterling to the extent that it pushes UK real yields lower. But we'd argue with the change in the BoE's (Bank of England's) message last week to become more hawkish, if we get an upside surprise to inflation, UK front end nominal rates should price in a greater likelihood of a BoE rate hike and therefore sterling shouldn't weaken.
Mar 21 2017
Sam Lynton-Brown has been quoted 11 times. The two most recent articles where Sam Lynton-Brown has been quoted are Sterling stumbles to first three-day fall of year and Sterling hits one-month lows as Scotland unveils Brexit options. Most recently, Sam Lynton-Brown was quoted as having said, “(Bank of England Governor Mark) Carney will probably reiterate his line that there are limits to tolerance of above-target inflation. If that rhetoric occurs at the same time of potential upward revisions to growth forecasts and maybe even inflation forecasts, that will prompt the market to increase its pricing for the probability of a Bank of England rate hike by the end of this year.”.
Quotes by Sam Lynton-Brown
Jan 30 2017
(Bank of England Governor Mark) Carney will probably reiterate his line that there are limits to tolerance of above-target inflation. If that rhetoric occurs at the same time of potential upward revisions to growth forecasts and maybe even inflation forecasts, that will prompt the market to increase its pricing for the probability of a Bank of England rate hike by the end of this year.
Dec 20 2016
I don't feel (the move) is on anything fundamental. It is much more a function of the stregnthening dollar and some adjustments by traders to their positions towards the year-end.
Nov 03 2016
It is a near term upside risk, though of course then there are other factors, there will likely be an appeal and there is a Conservative majority in parliament and so on. But could it lead to a squeeze in short sterling positions this morning, definitely.
Oct 25 2016
That highlights the extent to which dollar gains are unlikely to be as extended as they were (in the past).
Sep 25 2016
The temptation is to say that the dollar should continue to weaken this week. Real yields have pushed much lower and there doesn't seem the potential for the Fed to move market expectations sharply from where they are - around 55 percent for a hike in December.
Sep 23 2016
The pound remains very sensitive to political developments and uncertainty. (But) the currency was, from a short-term fair-value perspective, too expensive, and what we're seeing today is a correction.
Aug 05 2016
The key point for us after this data is that the U.S. side of the equation has not so far come into play on sterling.
Aug 01 2016
Our interpretation of the July statement from the FOMC (Federal Open Market Committee) was that if data continues to remain very strong then September looks well underpriced by the market.
Jul 14 2016
Today's decision simply delays the start of the easing cycle by three weeks until the next meeting, which also corresponds with the publication of the central bank's quarterly inflation report.
Mar 09 2016
There's been very little information given so far on the angle the government is going to take when it invokes Article 50, so for the time being the pound should remain very sensitive to any information we get, because it's coming against the backdrop of a lot of uncertainty.