VIDEO BOEs Bailey cautious but not too cautious

Bank of England Governor Bailey spoke earlier today. Baily said that the slowing of COVID infections was a “huge accomplishment”, however he noted “If I had to summarize the diagnosis, its positive, but with a large dose of cautionary realism”

He said that the central bank’s main goal was to get inflation to the targeted 2% and keep it there before anymore burden of proof was needed on the sustainability of the economy.

Learn Everything you Need to Know About the Bank of England

Contrast those comments with comments from some ECB officials last week, who noted that they felt the ECB needs to pick up the pace of its bond buying program to keep interest rates low, and the Sterling should outperform the Euro

The ECB meets on Thursday and the BOE meets next Thursday

If the BOE continues to be less dovish that than ECB, EUR/GBP may continue lower. However, if the ECB surprises and is less dovish at their interest rate meeting on Thursday, EUR/GBP may bounce.

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