- Analytics
- News and Tools
- Market News
- BoE: Potential for disappointment, risk of a downside correction in GBP – Commerzbank
BoE: Potential for disappointment, risk of a downside correction in GBP – Commerzbank
Sterling was able to stand up well against USD and EUR over the past weeks. You-Na Park-Heger, FX Analyst at Commerzbank, expects the GBP to correct lower following the Bank of England (BoE) meeting.
Rate expectations support Sterling ahead of BoE meeting
“An important positive driver is likely to have been market rate expectations. The market is now expecting at least two further rate hikes by the BoE.”
“It is almost certain that the BoE will hike its key rate by a further 25 bps to 4.5% this Thursday; it seems just an aside. What will be much more interesting will be how the individual members of the monetary policy committee will vote and what they have to say about recent economic data, as the market is likely to hope for indications on the future course of its monetary policy.”
“As the BoE has been quite hesitant and cautious as regards the fight against inflation it is difficult to believe that it will surprise with a hawkish stance on Thursday. I, therefore, see a certain potential for disappointment and thus the risk of a downside correction in Sterling as the market’s rate expectations seem quite ambitious. However, I am happy to be proven wrong.”
© 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
