Euro may dip below 70p if UK hikes rate

In this regard, the attention is back on the prospects for divergence in global monetary policy, with the potential for both the US Fed and the Bank of England to start hiking interest rates in 2015/16 well before the ECB, where interest rates are not expected to start rising until 2018.
Central bank events and speeches in recent weeks have served as a reminder that we are getting closer to this point of divergence in global monetary policy. Both the Fed and Bank of England have started to reaffirm some of their hawkish credentials.