GBP/USD to test 1.24 with continued weakness below this mark a possibility – Scotiabank GBPUSD Banks BOE
Markets await next week’s Bank of England decision. Economists at Scotiabank expect GBP losses to resume to below 1.24.“The bank is likely to hike by 25bps but it looks set to accompany this with a cautious economic outlook and implicit guidance that market pricing seeing 150bps in hikes by year-end is significantly out of line – as this would result in a notable undershoot in inflation.
“A firm and longer-lasting drop under 1.25 seems likely and with it a test of 1.24 with continued weakness below this mark also a possibility.”Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions.
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