UK: Carney and Co. will deliver a rate cut later this week - BBH

Research Team at BBH, notes that the Sterling is trading inside yesterday's range, which is inside last Friday's range and has been bid to session highs near $1.3250 in the European morning. 

Key Quotes

“The weaker US dollar environment is offsetting the poor UK news.  Today it comes in the form of the construction PMI. The slippage is minor, from 46.0 to 45.9.  However, it is the second month below the 50 boom/bust level.  It is consistent with the recent string of surveys pointing to a palatable shock to sentiment and forward-looking plans triggered by the Brexit decision.   

The derivatives market shows high confidence that Carney and Co. will deliver a rate cut later this week, and announce additional measures as well.  Similar to the Australian dollar, we suspect sterling can probe yesterday's highs, but we are not convinced that greater strength can materialize yet.”