Sterling underperforms again despite Bank of England (BoE) emergency bond buying plans. The BBH economists expect the pair GBP/USD test the low of 1.0350.
The BOE will make temporary purchases of long-term bonds
“The BoE noted that to achieve its objective of maintaining financial stability, “the Bank will carry out temporary purchases of long-term UK government bonds from September 28. The purpose of these purchases will be to restore orderly market conditions.”
“However, neither the rate hike nor the emergency bond purchase plan has done anything for sterling. Market confidence, once lost, is always difficult to regain.”
“We look forward to an eventual test of this week’s new record low near 1.0350.”
Source: Fx Street
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.