GBP/USD to struggle to recover just yet after new restrictions in the UK – ING
|Sterling is currently the big underperformer in the G10 space, dragged down by the introduction of new covid restrictions by the British government. Economists at ING expect the GBP/USD pair to fall below the 1.32 level.
Sterling hit by new restrictions
“New guidance to work from home is largely expected to generate a fresh drag to an economy that can no longer count on pandemic emergency support tools, like the furlough scheme. This is likely contributing to tilt market sentiment further towards the ‘no-hike’ camp ahead of the 16 December Bank of England meeting.”
“PM Boris Johnson seems to be navigating the toughest period of his tenure and there is some risk that along with the economic implications of new restrictions in the UK, markets may be inclined to price in some degree of political instability as well.”
“Some recovery in the dollar may pressure cable below 1.3200 today, with sterling struggling to show any idiosyncratic strength for the time being.”
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.