TD Securities' report by Julie Ioffe discusses the recent decision by the Bank of England to hold the Bank Rate at 3.75%. The dovish lean in the voting suggests potential cuts in the near future. The report notes that while GBP has shown strength, it is likely to pause due to an expected bounce back of the USD, particularly in Q1, which typically sees strong US data. The outlook remains bullish for GBP against the USD but bearish against the EUR.

BoE holds rates with dovish sentiment

"The Bank of England voted to hold Bank Rate at 3.75%, with of 5-4 split, which was more dovish than was expected by the market."

"Looking forward, today's four dissents and the balanced wavering of Bailey and Mann at this meeting continue to anchor us on a final March cut to a 3.50% Bank Rate."

"Structurally, we like GBP upside vs the USD but downside vs the EUR."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)