- Analytics
- News and Tools
- Market News
- GBP/USD: UK rates markets pare back BoE easing expectations – Scotiabank
GBP/USD: UK rates markets pare back BoE easing expectations – Scotiabank
The UK budget update largely conformed to expectations. The government will raise taxes and borrowing significantly but will also spend heavily on priority projects, Scotiabank’s Chief FX Strategist Shaun Osborne notes.
GBP is trading firmer
“UK markets largely took the news in their stride. UK Gilts weakened in the budget aftermath but losses reflected the generally weaker tone of fixed income markets (where core European bonds actually performed worse).”
“UK rates markets continue to anticipate a November rate cut from the BoE but, with the budget expected to give the economy a lift relative to its prior state, expectations for a December follow up have been pared back significantly. Rate sentiment continues to weigh on Gilts today but may add to GBP underpinning in the short run at least.”
“Choppy markets yesterday have muddied the near-term outlook for the GBP. While spot is holding within its recent trading range, heavy selling pressure yesterday has left a dent in the intraday and daily charts which may stifle the week-long grind higher in Cable from the low 1.29s. Intraday support does look firm around 1.2935 but a move above 1.3043, yesterday’s high, is needed to give the pound a clearer technical lift now.”
© 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
