GBP - waiting

Dovish comments from a known policy dove tend to have a limited impact on market pricing. This morning, the BoE’s Taylor remarked that he expected that UK monetary policy will normalise at neutral sooner rather than later. However, since he is one of the most dovish members of the MPC, this did not have much impact on the pound. Indeed, GBP earlier this morning was the best performing G10 currency on a 1-day view. EUR/GBP continues to trade just above the 200-day sma at 0.8630, which can be expected to offer good support. Whether or not GBP pushes through this level could be decided by the relative strength of tomorrow’s release of UK November monthly GDP data.