Pound Seen Extending Rally After Dovish Fed Returns Focus to BOE

  • Credit Agricole sees sterling at 70 pence per euro by year-end
  • Gilts surge after Fed rates decision erases weekly declines

The pound may extend its gains after the Federal Reserve left interest rates near zero and struck a dovish tone in explaining itself, leaving the Bank of England as the only major central bank signaling clearly that it’s prepared to raise interest rates, according to Credit Agricole SA.

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