Pound Sterling Price News and Forecast: GBP/USD vulnerable to a break of parity later this year
|GBP/USD Forecast: Is BoE's message strong enough for a steady pound recovery?
GBP/USD has managed to pull away from the all-time low it touched at 1.0340 at the beginning of the week. The pair was last seen rising nearly 1% on the day at 1.0800 but it might need further reassurance from the Bank of England (BoE) for an extended rebound.
Following the British pound's significant depreciation, the BoE released a statement late Monday and noted that they were monitoring the developments in financial markets closely. The BoE added that they won't hesitate to raise interest rates by "as much as needed" to return inflation to the 2% target. However, the bank also said that they welcome the government’s commitment to sustainable economic growth, which was why GBP fell sharply in the first place. Read more...
GBP/USD: Vulnerable to a break of parity later this year – ING
There has been a loose discussion in the market about the prospect of GBP/USD hitting parity for some months. Economists at ING believe that the pair could break under 1.00 this year.
“At this stage, we think UK authorities will probably just have to let sterling find its right level. The UK has a reserve currency so it can always issue debt – it’s just a question of the right price.” Read more...
GBP/USD could retest 1.0350 over the next month – ING
GBP/USD has recovered the 1.08 level. Nonetheless, economists at ING expect the pair to ease back lower towards 1.0350.
“FX markets feel like the dollar is going into early 1980s over-drive territory and barring a stark reversal in hawkish Fed expectations or slowing growth dynamics, we would say cable could retest 1.0350 over the next month.”
“On a day in which the dollar is consolidating, GBP/USD could trace out something like a 1.07-1.09 range.” Read more...
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