- Analytics
- News and Tools
- Market News
- GBP/USD to slide below 1.34 towards 1.32 on a Russian invasion of Ukraine – Scotiabank
GBP/USD to slide below 1.34 towards 1.32 on a Russian invasion of Ukraine – Scotiabank
GBP/USD has tested the 1.35 level ahead of key domestic data releases this week. Economists at Scotiabank believe that the cable could plunge to the 1.32 level if Russia makes a move into Ukrainian territory.
GBP to lose its footing as market reassess the outlook for BoE policy
“The ONS’s data on January payrolls and inflation should go a long way to confirming BoE hike expectations although we think that markets are overconfident in their assessment of a 50bps increase. OIS markets reflect an 80% chance of such a move and also expect the bank rate to reach 2% as soon as November, which is too steep of a hiking pace and too high of a terminal rate for the BoE to follow.”
“Rate hike bets may be getting stretched in the case of the Fed but, overall, we think there is more for disappointment from the BoE, which presents downside risks for the GBP.”
“A Russian invasion of Ukraine would likely trigger GBP losses under 1.34 with an eventual test of the 1.32 zone.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
