- Analytics
- News and Tools
- Market News
- GBP/USD: Downside risks as BoE rate hike expectations are too high – Commerzbank
GBP/USD: Downside risks as BoE rate hike expectations are too high – Commerzbank
Since UK inflation rates for April surprised on the upside last week Sterling has been on the up. Economists at Commerzbank note downside risks for the GBP, though.
Rate hikes to the extent as the market is currently expecting seem exaggerated
“It is quite possible that we will continue to see data surprises over the coming weeks and that inflation turns out to be more stubborn than the BoE is currently expecting. As long as this risk remains in place the market will see no reason to change its rate hike expectations.”
“The latest data publications no doubt provide arguments for further rate hikes. For that reason, Sterling will remain supported short-term. Rate hikes to the extent as the market is currently expecting seem exaggerated though as we assume that sooner or later the data will point to falling price pressure and a further weakening of the economy.”
“We therefore see the risk of a correction of the rate expectations and thus downside risks for Sterling.”
© 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
