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GBP wobbles again as BOE begins its pre-referendum liquidity additions

Bank of England begin their long-signalled liquidity operations as the EU referendum draws ever closer 14 June 2016

  • GBP 2.455bln allotted in indexed 6-month long-term repo
  • repo results show bids received from banks and funds allotted lowest since February's regular offering

The BOE have been signalling for a while their intent to add liquidity in the run-in to the 23 June EU referendum vote but the lack of take-up will be of concern. Or perhaps the banks have gorged enough already at the table of cheap money.

Either way cable had another test of the support/demand between 1.4100-20 but has bounced back into 1.4150 as EURGBP sellers win the day so far.

The BOE has another repo scheduled for next Tuesday and a further one on the Tuesday after (28th) by which time we will know exactly where they stand on the result.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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