Pound May Extend Losses If U.K. Data Weakens and Political Risks Rise

Nick Rees of Monex Europe said in a report that upcoming U.K. economic data and domestic political developments will determine whether the pound continues to weaken after the Bank of England kept its policy rate unchanged at 3.75% on Thursday. According to Jin10, Rees said the Bank of England’s communication suggested there was, overall, no urgent need to change policy in the near term, even though two of the nine members of the Monetary Policy Committee voted to raise rates. Rees added that if further data show signs of economic weakness and political risks increase, the pound may fall further.