GBP/USD may plummet to 1.32 if BoE delays tapering – ING
|Despite much discussion of stagflation and the UK returning to the candle-powered 1970s, GBP is actually performing quite well. Yet economists at ING are uncertain whether the Bank of England will act as early as the market expects. Therefore, GBP/USD may plunge to the 1.32 level in a couple of months.
Market is convinced the BoE moves early
“Our team feel that the BoE will hike later than market pricing – warning of some downside risk to GBP. Look out for key speeches from BoE hawks – and whether they seek to correct expectations.”
“Cable could briefly see 1.32 in next two months if the BoE indeed rejects calls for early tightening. And USD should outperform.”
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. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.