Pound to face twin forces of BOE and Brexit again

London

WITH an initial Brexit deal out of the way, pound traders will be focusing on whether optimism over that lasts and shifts in the Bank of England's thinking this week.

Even with an agreement to move Brexit talks on to trade and no expectations for the BOE to change interest rates on Thursday, news on either front could drive the currency, according to Jeremy Stretch, Canadian Imperial Bank of Commerce's head of Group-of-10 currency strategy. BOE governor Mark Carney has tied the next policy shift to the success of the Brexit negotiations.