“Forward contracts based on the sterling overnight index average, or Sonia, suggest that a full 25 basis-point increase to the BOE’s key rate won’t come until after November 2016,” according to Bloomberg.
However, some traders also believe the dollar is poised to resume its rally.
“Traders see a 43 percent probability of a move by the Fed’s Dec. 15-16 meeting, according to futures data compiled by Bloomberg. The chances are 51 percent by the January meeting and 64 percent by the March gathering, based on the assumption that the effective fed funds rate will average 0.375 percent after liftoff,” according to Bloomberg.
CurrencyShares British Pound Sterling Trust
