The British pound suffered a huge sell-off yesterday, while today we have the RICS house price balance data for October. In the opinion of ING economists, GBPUSD could test the 1.1150 level today.
Housing prices begin to feel the crisis
“UK estate agents now see that house prices are falling for the first time since the summer of 2020, a clear response to the recent rise in mortgage rates. This will once again call into question the market’s assessment of the Bank of England’s tightening cycle, where we think rates priced at 4.65% next summer are too high.”
“1.1150 is a clear target for GBPUSD if the dollar were to strengthen today. Again, we doubt gains above 1.15 will hold.”
Source: Fx Street
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