eFXdata reports that Citi outlines its expectations for Thursday’s Scottish Parliamentary election, and BoE policy meeting.

"With no overnight counting, event risk is likely to persist into this weekend. The SNP is likely to be the biggest party, but whether they achieve an outright majority remains relevant for GBP. Concerns about another independence referendum could weigh on GBP into and after the event, but GBP weakness on risk reduction into political uncertainty should be faded," Citi notes. 

"We see a reasonable chance that the BoE do message a technical QE taper. We also see plenty of reasons to wait. We think FX is only going to care if the nature of the ‘taper or no taper’ debate at the April meeting bears much relevance to the overall direction of monetary policy," Citi adds.