{"id":270816,"date":"2026-02-06T15:12:08","date_gmt":"2026-02-06T15:12:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/270816\/"},"modified":"2026-02-06T15:12:08","modified_gmt":"2026-02-06T15:12:08","slug":"pound-pressured-by-boe-and-politics-mufg","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/270816\/","title":{"rendered":"Pound pressured by BoE and politics \u2013 MUFG"},"content":{"rendered":"<p>Lee Hardman from MUFG highlights that the Pound has sold off sharply, with EUR\/GBP breaking above its 200-day moving average as markets reprice a more dovish Bank of England path. A closer-than-expected MPC vote, softer guidance, and rising UK political risks around Prime Minister Keir Starmer and potential leadership challenges are seen adding downside pressure to Sterling.<\/p>\n<p>BoE repricing and UK political stress<\/p>\n<p>&#8220;The pound has weakened sharply over the last couple of trading days.&#8221;<\/p>\n<p>&#8220;After closing below support from the 200-day moving average at the start of <a href=\"https:\/\/www.fxstreet.com\/economic-calendar\" data-fxs-autoanchor=\"\" rel=\"nofollow noopener\" target=\"_blank\">this week<\/a> for the first time since April of last year and hitting a low of 0.8613, <a href=\"https:\/\/www.fxstreet.com\/currencies\/eurgbp\" data-fxs-autoanchor=\"\" rel=\"nofollow noopener\" target=\"_blank\">EUR\/GBP<\/a> jumped to a high yesterday of 0.8721.&#8221;<\/p>\n<p>&#8220;The abrupt reversal of the pound strengthening trend that had been in place since late last year was triggered both by the dovish repricing of <a href=\"https:\/\/www.fxstreet.com\/macroeconomics\/central-banks\/boe\" data-fxs-autoanchor=\"\" rel=\"nofollow noopener\" target=\"_blank\">BoE<\/a> rate cut expectations and the return of political risk in the UK.&#8221;<\/p>\n<p>&#8220;We are currently forecasting two more cuts this year but can\u2019t rule out a third later this year.&#8221;<\/p>\n<p>&#8220;The UK rate market has moved to price back in more rate cuts from the BoE after yesterday\u2019s MPC meeting.&#8221;<\/p>\n<p>(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)<\/p>\n","protected":false},"excerpt":{"rendered":"Lee Hardman from MUFG highlights that the Pound has sold off sharply, with EUR\/GBP breaking above its 200-day&hellip;\n","protected":false},"author":2,"featured_media":270817,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[138,219,111,139,69],"class_list":{"0":"post-270816","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economy","10":"tag-new-zealand","11":"tag-newzealand","12":"tag-nz"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/270816","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=270816"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/270816\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/270817"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=270816"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=270816"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=270816"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}