This week’s highlight will be the Bank of England meeting on Thursday. The ING Economists expect the “Old Lady” to go back to a 50 basis point rally and GBP/USD to move below the 1.23 level.
The BoE will rise 50 basis points this week
“We expect the BoE to return to a 50 basis point hike (55 bp are already discounted in the market price) while tries to balance high inflation against mounting evidence of a prolonged recession – with few signs of encouragement.”
“Our game plan assumes that GBP/USD struggles to hold any gains above 1.23Meanwhile he EUR/GBP should find support in the 0.85/0.86 zone.”
“A winter of discontent should see sterling underperform should central bankers need to keep rates tight in a downturn.”
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.
