Kamal Sharma, Currency Strategist at London-based Bank of America (BofA), offers a bearish outlook on sterlingpredicting further declines this year. Key comments “Sterling’s fall from grace has been epic given the euphoria of the past year and in many ways has caught the investment community by surprise.” “Threadneedle Street faces ‘unique’ challenges, including Brexit, that […]
Tag: BOE
GBP/USD consolidates near 1-month highs at 1.2650
GBP/USD is consolidating in fairly quiet trade near 1-month highs at 1.2650. Volumes this week will be reduced due to public holidays in the US (Monday) and UK (Thursday and Friday). However, the flurry of US data to be released soon means that the outlook for volatility remains high. Trading conditions are calm on Monday […]
GBP/USD pulls back from 1-month highs, holds above 1.2600
GBP/USD rises to a new monthly high and is supported by a selling bias around the USD. Speculation that the Fed could pause the rate hike cycle and risk appetite weighs on the dollar. Doubts about further rate hikes from the Bank of England and Brexit woes prevent bulls from opening aggressive positions. The pair […]
GBP/USD pulls back heading back towards 1.2550
GBP/USD has pulled back from an unexpected rise to 1.2600 following Brexit headlines. The pair is trading again at 1.2560, despite Sunak’s announcement of significant additional help for low-income households. The pair GBP/USD has momentarily hit a fresh three-week high above 1.2600 in early trading as the pound has been buoyed by reports that UK […]
GBP/USD fails to find acceptance above 1.2600, returns early gains to multi-week highs
GBP/USD rises to a three-week high on Thursday amid subdued USD price action. Recession fears and risk-off sentiment should limit deeper losses for the safe-haven USD. Doubts over further rate hikes from the Bank of England and Brexit woes could cap sterling’s gains. The pair GBP/USD has reversed a drop earlier in the European session […]
GBP/USD falls back below 1.2500, focus on Fed speech and FOMC minutes
GBP/USD has dipped back below 1.2500 on Wednesday as the dollar rallied ahead of the Fed’s statements and after Tuesday’s weak UK PMIs. The monetary policy spread between the Bank of England and the Federal Reserve remains a headwind, as do UK policy and tensions between the UK and the EU over the Northern Ireland […]
BoE: More rate hikes needed, but watch out for recession – Huw Pill
In an interview with the Western Mail newspaper, the chief economist of the Bank of England (BOE), Huw Pill, has said that he believes that more interest rate hikes are needed, adding that he is aware it could trigger an economic downturn. Key comments “Too much risks falling into a deep recession, which is very […]
GBP/USD holds on to modest gains near 1.2550, upside looks limited
GBP/USD regains positive traction on Wednesday. Diminishing odds of the Bank of England raising interest rates further could act as a headwind amid Brexit woes. Modest dollar strength could help limit gains ahead of the FOMC minutes. The pair GBP/USD it has built on the previous day’s bounce from the 1.2470 area and has gained […]
GBP/USD slides back below 1.2500
GBP/USD has dipped back below 1.2500 on Tuesday following weak UK PMI data and amid inflows of risk aversion. The pair is targeting a test of its 21 DMA around 1.2425. British pound bears regained control on Tuesday and pushed the GBP/USD back below the 1.2500 level, a roughly 100 pip reversal from the previous […]
Breaking News: GBP/USD Slumps to Below 1.2500 Levels Amid Doubts Over Further BoE Rate Hikes
After reaching an intraday high at 1.2598 at the European open on Tuesday, the GBP/USD has tumbled nearly 120 pips to hit a two-day low at 1.2475. The pair trades at time of writing above 1.2480, losing 0.84% ​​daily. The decline has come after the release of UK services PMI data, which showed a sharp […]
