BLBG: Crude Oil Falls a Second Day as Report Shows Stockpile Gain
By Zijing Wu and Matthew Brown
Aug. 6 (Bloomberg) -- Investors should sell the euro against the pound should it strengthen after any decision by the Bank of England to expand its asset-purchase program, according to Commerzbank AG.
“It is likely that the bank will increase the quantitative-easing volume by 25 billion pounds ($42 billion), although the bank may shift the focus away from gilt purchases towards corporate debt,” a team of analysts led by Ulrich Leuchtmann in Frankfurt wrote today in a report. “From a pound point of view, such an announcement may provide initial support to euro-pound, although we would see such a bounce as a selling opportunity at a time when recent economic data confirm the view that the U.K. economy will outperform the euro zone.”
The euro was little changed at 84.78 U.K. pence as of 10:42 a.m. in London, from 84.81 pence yesterday.
To contact the reporters on this story: Zijing Wu in London zwu17@bloomberg.net; Matthew Brown in London at mbrown42@bloomberg.net
