The Friday price action, particularly in the USD/USD, had all the characteristics of a Squeeze Short, says Chris Turner, FX Analyst of ING.
The GBP/USD will quote in 1.19/20 at the end of this year
“The short GBP/USD had been the bet of conviction for many at the beginning of the year, given the fiscal problems of the United Kingdom, but the lowest yields of the bonds have relieved pressure on the assets markets of the United Kingdom. And the (probably wrong) Perspective of a softer rates regime in the US has also softened the dollar. “
“However, for British companies short in dollars, we see the GBP/USD in the 1.25/26 area as an interesting area to consider the USD coverage proportions. We believe that there is a good reason for the GBP/USD COTICE In 1.19/20 at the end of this year, since the Bank of England accelerates its relaxation cycle and the chancellor may have to return to the table with more tax adjustments at the end of this year. “
“As for the United Kingdom calendar this week, Wednesday could be the most interesting. The governor of the BOE, Andrew Bailey, testifies to the select Treasury Committee on Financial Stability. On the same day, the United Kingdom Chancellor, Rachel Reeves, tries to change the narrative again to the growth agenda in a speech in Oxford. “
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
