- Analytics
- News and Tools
- Market News
- Further Sterling weakness seems likely – Commerzbank
Further Sterling weakness seems likely – Commerzbank
The Bank of England (BoE) hiked its key rate by 50 bps to 4%, but it softened its communication notably. Sterling came under strong selling pressure following the event. Economists at Commerzbank expect further GBP weakness.
BoE signals rate hikes will end soon
“It became clear that the BoE is quite close to the end of its rate hike cycle.”
“The impression suggests itself that the BoE might have hit the communication break a little too soon, as inflation is in double digits, and it will yet have to be seen whether it eases that quickly after all. The labour market seemed quite robust until now and the news of strikes signals that the risk of rising wages remains quite real.”
“Although the BoE left the door open for further rate hikes, from the FX market’s point of view a more decisive approach would have been desirable in view of the high uncertainty. Against this background, it is hardly surprising that Sterling eased and further Sterling weakness seems likely to us.”
© 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
