- Analytics
- News and Tools
- Market News
- GBP/USD: Sterlign may struggle for direction over the near-term – HSBC
GBP/USD: Sterlign may struggle for direction over the near-term – HSBC
The UK government announced another GBP15bn of measures for households, partially funded by a windfall tax. Until it becomes clearer how the new fiscal policy interacts with the monetary policy, the GBP may struggle for direction, economists at HSBC report.
Lacking energy, despite new fiscal measures
“The GBP is being pushed and pulled by the latest UK fiscal announcement on 26 May, with potentially positive cyclical signals battling against contrastingly negative structural ones. Until it is clear how this new fiscal policy interacts with the Bank of England’s (BoE) monetary policy, the GBP may struggle for direction.”
“The extra help being offered to a range of consumers suggests upside risks for inflation, demand and interest rates.”
“As only GBP5bn will be raised through the windfall tax, with the other GBP10bn presumably being added to borrowing, markets might see the increase in the budget deficit implied by the latest plan as a longer-term structural concern for the UK and for the GBP.”
© 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
