logo |

Forum

    Your location: Home >  Forum  >  Market analysis  >  Content details
    Nigeria 2022-05-13 13:44:27
    Market analysis BEARISH GBP

    Related product:Forex
    Market analysis:Despite the Bank of England hiking at the fastest pace in over a decade, Cable is on course for its worst quarterly performance since Q1 2020. Looking ahead to Q2, I lean towards a bearish GBP stance against commodity currencies and currencies backed by increasingly hawkish central banks such as the USD.

    GBP/USD CAN BREAK BELOW 1.30
    As the UK heads towards the biggest squeeze on incomes in a generation, the BoE has become increasingly cautious over downside growth risks. So much so that they have slightly tweaked their forward guidance, suggesting a possible pause in their hiking cycle. This is despite inflation pressures picking up. I believe there is a chance this happens when the bank rate is at 1%. However, should this not be the case, money markets are still far too aggressive relative to the BoE’s growing reluctance to continue raising rates, given the current trade-off between slowing growth and rising inflation pressures. In contrast, at the Federal Reserve, Powell and Co. are warming up to the idea of back to back 50bp rate rises in May and June, alongside quantitative tightening in order to return to neutral as quickly as possible. In turn, rate differentials are moving in favour of the USD.

    Write your question...
    Please sign in first Sign up/in to comment
    0 Comments

    There is no comment yet. Make the first one.

    DAILYFX
    Trader

    Successfully published

    Risk Warning

    The Database of WikiFX comes from the official regulatory authorities , such as the FCA, ASIC, etc. The published content is also based on fairness, objectivity and fact. WikiFX doesn't ask for PR fees, advertising fees, ranking fees, data cleaning fees and other illogical fees. WikiFX will do its utmost to maintain the consistency and synchronization of database with authoritative data sources such as regulatory authorities, but does not guarantee the data to be up to date consistently.

    Given the complexity of forex industry, some brokers are issued legal licenses by cheating regulation institutes. If the data published by WikiFX are not in accordance with the fact, please click 'Complaints 'and 'Correction' to inform us. We will check immediately and release the results.

    Foreign exchange, precious metals and over-the-counter (OTC) contracts are leveraged products, which have high risks and may lead to losses of your investment principal. Please invest rationally.

    Special Note, the content of the Wikifx site is for information purposes only and should not be construed as investment advice. The Forex broker is chosen by the client. The client understands and takes into account all risks arising with Forex trading is not relevant with WikiFX, the client should bear full responsibility for their consequences.