GBP/USD could inch close to parity by year-end – ING

FXStreet Insights Team FXStreet

GBP/USD is approaching the 1.10 level. In the view of economists at ING, heightened scrutiny on policy choices can see GBP/USD nearing parity later this year.

Cable does not seem out of the woods yet

“It looks like the Fed will be pushing real interest rates deeper into more restrictive territory over coming months. That will tighten liquidity conditions still further and see that any policy mistakes get punished. The new UK government admitted such a policy mistake when reversing plans to scrap the top rate income tax bracket. The UK Gilt market was just not ready for huge supply.”

“Key dates for the diary are 14 and 31 October. The BoE intervened to buy Gilts but said it would stop on 14 October. Does the Gilt market allow that to happen? And 31 October sees the medium-term fiscal plan released. Do the numbers add up?”

“GBP/USD: 1M 1.07 (1.1085) 3M 1.02 (1.1098) 6M 1.02 (1.1089) 12M 1.11 (1.1038).”

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.