GBP/USD: BOE pricing too aggressive, eyes a break below 1.20 in the near-term – TDS
|Economists at TD Securities expect the GBP/USD pair to continue its downfall. Although the Bank of England (BoE) could offer some support the market is too aggresive in its pricing and cable is likely to break under 1.20 in the near-term.
GBP vulnerable on the crosses
“The near-term GBP trajectory is biased to the downside, even though it maintains a pretty hefty discount.”
“The BoE plus fiscal support may help to put a floor in cable but not before a near-term break below 1.20. Still, BoE pricing seems too aggressive relative to our forecast, leaving GBP vulnerable on the crosses.”
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