- Analytics
- News and Tools
- Market News
- GBP/USD could be just a 1.2600 story on BoE dovish pivot – ING
GBP/USD could be just a 1.2600 story on BoE dovish pivot – ING
A less hawkish stance from the Bank of England (BoE) should weigh on Pound Sterling (GBP), economists at ING say.
BoE should signal tightening cycle is over
Downside risks to Sterling will emerge from both the BoE dropping its tightening bias and the voting structure shifting from a 6-3 (three for a hike) to a 9-0. We rarely hear from the BoE so in a way, this would be the BoE's chance to play catch-up with some of the dovish rhetoric being used by both the Fed and the ECB.
GBP/USD could be just a 1.2600 story if we are right with our dovish leaning today.
We will get this wrong if the BoE wants to emphasise sticky services inflation and if one or two of the hawks continue to vote for rate hikes. Currently, the market seems to price the first BoE cut for June. We think the easing cycle is more likely to start in August.
© 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
