GBP/USD to remain vulnerable amid UK monetary and fiscal policy concerns – HSBC
|GBP/USD crashed to an all-time low on 26 September. Economists at HSBC expect the pound to remain under pressure amid concerns over the UK’s structural challenges and policy credibility.
BoE to buy long-dated gilts every weekday until 14 October 2022
“On 28 September, the Bank of England (BoE) surprisingly announced that it would buy long-dated gilts every weekday until 14 October 2022 to stabilise the gilts market, and the start of its quantitative tightening (QT) programme would be postponed to 31 October 2022. But for the GBP, this intervention does not address the underlying driver to that market dysfunction, which is the market’s discomfort with the divergent implications of UK monetary and fiscal policy.”
“With market concerns over the UK’s structural challenges and policy credibility, the GBP remains vulnerable.”
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