Currencies: Pound Spanked After BoE Moves

A quick hit from Marc to Market:

Sterling has slumped two cents in the wake of the Bank of England's announcement.  It cut the base rate 25 bp and announced a resumption of its asset purchase program.  It will buy GBP60 bln of Gilts and added corporate bonds to its purchase plan, which will be completed over the next six months.  Corporate bonds will initially account for up to GBP10 bln asset purchase....MORE

...We expect sterling to trend lower, even though the bookmakers in London have tightened the odds Article 50 of the Lisbon Treaty will not be triggered until 2018 if at all.   We expect the $1.28 low from early last month to eventually give way, and for sterling to move toward $1.20 in the coming months.