- Analytics
- News and Tools
- Market News
- GBP/USD can test the 1.30 level – Credit Suisse
GBP/USD can test the 1.30 level – Credit Suisse
A bullish GBP view has been among Credit Suisse’s most consistent positions of 2023 so far. More gains are likely.
EUR/GBP to target 0.8450
Looking ahead, the biggest questions are: 1) can UK core inflation fall quickly given the tightness in the UK labour market and 2) is the UK housing market so fragile as to make it impossible for the BoE to hike as much as priced in and/or hold rates at a high level for a meaningful period of time?
We take the view that, if the ECB is worried about wage-price spiral risks in the Euro-area, the far-graver situation confronting the BoE in the UK should be defined as a genuine emergency that precludes excessive concern about the health of the UK housing market.
While GBP has clearly appreciated a great deal already in 2023, we see room for further gains, with EUR/GBP having scope to push to at least 0.8450 while GBP/USD can test 1.3000 too.
The main risk to our view is a sudden freeze/collapse in UK asset markets.
© 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
