Archived IMT (2009.03.05)

A positive GBP scenario would be for the BoE to cut by only 25-bps along with a detailed plan (in quantity, pace and type of bonds) by which the BoE will adopt quantitative easing. The worst scenario for sterling would be for the Bank to slash by at least 50-bps without announcing any tangible plans for the next step of monetary policy. Negtaive bias remains amid renewed losses in FTSE. GBPUSD eyes $1.4050, a break fo which could extend towards $1.36. ECB decision follows at 12:45 pm GMT. Market expects 50-bps but I'm leaning toards 75-bps as downward revisions will be on the low side.