Rabobank: Due to the cautious stance of the Bank of England and the political risks in the UK, the pound is under pressure

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Golden Finance reported that on June 17, Jane Foley of Rabobank said in a report that if the Bank of England adopts a cautious approach to rate hikes and the UK’s special election increases political concerns, the pound could fall. She said that the UK inflation data released on Wednesday that came in below expectations has intensified debate over whether the Bank of England will extend its “wait-and-see” strategy on Thursday. If Andy Burnham wins the special election on Thursday, he could challenge Prime Minister Keir Starmer’s leadership. His left-leaning stance and the prospect that fiscally conservative Chancellor Rachel Reeves could be replaced may worry the UK gilt market and “cause pound volatility.” The pound fell 0.1% to $1.3414, and Rabobank believes there is a risk that the pound could drop to $1.33 in the coming months. The euro rose 0.1% to 0.8647 pounds.
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