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Brexit in a focus with no data releases from the UK

With no major data releases from the UK today, traders continue to watch the Brexit polls and remain unsure as what to expect as the June 23rd vote approaches. While consolidation helped to shore up the GBP ahead of the weekend the underlying trend continues to point towards further bearishness in the run-up to the EU membership referendum in June. Read more...

BoE left interest rates unchanged

The Bank of England has decided to hold rates at 0.5 percent once again, a record low for seven years. All nine members of the BoE's Monetary Policy Committee (MPC) voted to hold on to low rates amid concerns over global growth and uncertainty ahead of a Brexit vote. The bank has been in no hurry to raise rates, and, with uncertainty over the referendum on the U.K.'s membership of the European Union in June, many anticipate it will wait and watch for any impact from the decision on the UK economy.  Read more...

Carney's `Brexit' Headache Intensifies With Rate Outlook Schism

Mark Carney could face a challenge in just over two months, regardless of whether Britons choose to stay in or quit the European Union. While the Bank of England governor has signaled a slow tightening path, and investors see no rate increase for years, a vote to stay in the EU on June 23 potentially creates a whole new backdrop. With ‘Brexit’ risk removed, markets could pull in bets for a hike, generating a new communication hurdle for the Monetary Policy Committee, which holds its monthly meeting this week.  Read more...

UK outlook for financial stability deteriorated

There are no data releases from the UK today. The Bank of England said on Tuesday that risks around Britain's referendum on the European Union could push up borrowing costs and weaken sterling, and tightened rules for mortgage lending to landlords.The central bank said the outlook for financial stability had worsened since its last quarterly report in November, and also moved ahead with plans to require some banks to hold extra capital as lending growth started to pick up.
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