- Analytics
- News and Tools
- Market News
- GBP/USD could drop to as low as 1.14 on a three months view – Rabobank
GBP/USD could drop to as low as 1.14 on a three months view – Rabobank
Analysts at Rabobank see risks that the GBP/USD pair may trade as low as 1.14 on a 1 to 3 month perspective. They warn that the scenario assumes another break below parity for EUR/USD.
Key Quotes:
“The Bank of England’s forecast of recession underpins the vulnerability of the pound going forward. The warnings on growth over-rode any support for the currency that may otherwise have been derived from the Bank’s 50 bps rate hike, the largest incremental move in 27 years. The UK is facing months of astoundingly high inflation levels faced by a period of disinflation during potentially 5 quarters of negative GDP growth. In politics, Liz Truss, the favourite to win the Tory party leadership race, continues her charm offensive aimed at Tory party members who will choose the next UK PM in September. Her policies, however, are not necessarily in line with investors’ needs. We see risk that cable could print as low at 1.14 on a 1 to 3 month view. This assumes a continued period of broad-based USD strength.”
“We recently reined back our 3 mth forecast for EUR/GBP to 0.84 from 0.86. That said, on the assumption that EUR/USD faces another break below parity on a 1 to 3 month view, we see scope for cable to head to 1.14.”
© 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
