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Stock impact report

Pound Bulls Get Reality Check as Slowing Inflation Hits BOE Bets [Bloomberg Business News]

Banco Santander, S.A. Sponsored ADR (Spain) (SAN) 
By David Goodman , John Ainger , and Charlotte Ryan Updated on Options see pound falling back to $1.40 more likely than rally Justifying a third hike ‘seems a stretch’, Santander says In the space of just three days, currency and bond traders have had their conviction on the possibility of two interest-rate hikes this year in the U.K. shaken. Sterling slid and gilts rallied Wednesday as inflation slowed to the weakest level in a year, the latest data point to suggest a full-blown tightening cycle isn’t needed after wage growth came in slower than expected Tuesday. While a hike in May is still almost fully priced in by markets, the chances of a second in 2018 have fallen. Traders now assign about a 30 percent chance of a follow-up in November, down from more than 50 percent at the end of last week. Show less Read more
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