The Bank of England is about to lay out its new policy and the pound is slightly lower. What’s next for the pound? Here is the view from Bank of America Merrill Lynch: Here is their view, courtesy of eFXnews: We expect the BoE to cut Bank Rate on Thursday. They have nothing to gain by waiting: better to get ahead of the issue. – We look for 40bp cut, but see a good chance of only 25bp: Carney has said he is concerned about taking rates “too low”. We remain bearish GBP and would sell any bounce. Our concerns for GBP are two-fold: the macroeconomic impact as data for the full post–Referendum period emerge and the constraints placed on the currency by virtue of the UK’s sizeable current account deficit. Financing of that deficit, which was under close scrutiny headed into the Referendum, will now be front and center for investors. We believe the deficit will be increasingly exposed as the volatile macro and political backdrop deters foreign investment decisions (short and long term) into the UK. In our view, a rate cut should come as no surprise, but even a more conservative 25bp rate cut will not likely provide any relief for the pound and we would use any bounce as an opportunity to sell into. We reiterate our long July MPC dated Sonia on expectations of a cut. For lots more FX trades from major banks, sign up to eFXplus By signing up to eFXplus via the link above, you are directly supporting Forex Crunch. Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam Forex News Today: Daily Trading News share Read Next Will Carney cause carnage to the pound? [Video] Yohay Elam 6 years The Bank of England is about to lay out its new policy and the pound is slightly lower. What's next for the pound? Here is the view from Bank of America Merrill Lynch: Here is their view, courtesy of eFXnews: We expect the BoE to cut Bank Rate on Thursday. They have nothing to gain by waiting: better to get ahead of the issue. - We look for 40bp cut, but see a good chance of only 25bp: Carney has said he is concerned about taking rates "too low". We remain bearish GBP and would sell any bounce. Our concerns… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.