The Bank of England is unlikely to raise rates by as much as markets expect

On Tuesday (Nov 1), subopen, / down, temporarily traded at 1.1480, up 0.24%.

Is unlikely to raise rates by as much as markets expect.

The gilt market has changed its expectations of a rate rise after the government withdrew its tax cuts on October 17 due to a lack of funds, but it is still not enough.

Even after the recent repricing, we still believe that the boe is unlikely to raise banks as aggressively as the market is currently pricing them in.

GBP/USD should fall back to around 1.1500 as the positive tone returns and /BOE policy comes into focus.

Gbpusd is approaching temporary support at 1.1550 (static level).