Select Language

GBP: Calm restored - ING

Breaking news

GBP: Calm restored - ING

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
New update 2024.11.04 19:18
GBP: Calm restored - ING

update 2024.11.04 19:18

Friday's session seemed to signal that some calm has been restored in the gilt market, and that favoured a EUR/GBP decline back below the 0.8400 mark, ING's FX analyst Francesco Pesole notes.

BoE to announce its policy on Thursday

"Our short-term fair value model shows a rather modest risk premium of around 0.6% in EUR/GBP at the moment. As discussed last week, the pound and gilt markets are unlikely to face a rerun of the post-2022 mini budget crisis, but some gradual repricing higher in gilt yields on the back of wider expected borrowing can still weigh on the pound along the way."

"On Thursday, the Bank of England announces policy and a 25bp is widely expected. Markets will probably be more interested in hearing what the MPC has to say about last week's budget. While the Office for Budget Responsibility sees the announced fiscal measures are both pro-growth and inflationary, our UK economist does not expect them to significantly alter the BoE's view."

"For now, Governor Andrew Bailey may focus on the recent drop in services inflation and could try to drive the attention away from the budget and back to data. That could be read as a dovish signal for BoE rate expectations, and there is probably room for more easing to be added to the GBP swap curve, which is currently pricing in 32bp over the next two meetings. A dovish repricing can weigh on the pound this week, but should it also come with some lower long-end gilt yields, some inflows into sterling markets can offset selling pressure on GBP."


Date

Created

 : 2024.11.04

Update

Last updated

 : 2024.11.04

Related articles


Show more

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Most viewed

GBP/USD depreciates as Trump trade rallies on exit polls favoring the Republican candidate

GBP/USD offers its recent gains registered in the previous session, trading around 1.2940 during the Asian hours on Wednesday.
New
update2024.11.06 12:10

US Election 2024: Wisconsin exit polls show Trump ahead in the presidential race

The conviction of the Republican nominee Donald Trump becoming the 47th US president is growing stronger, according to the early exit polls, as polls closed in most states.
New
update2024.11.06 11:32

EUR/USD faces some selling pressure to near 1.0800 as Trump trades continue to rally

The EUR/USD pair falls to around 1.0805 during the Asian trading hours on Wednesday.
New
update2024.11.06 11:21

US Dollar Index rises above 104.00 due to caution as US election race remains competitive

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against its six major peers, appreciates to near 104.20 during the Asian trading session on Wednesday.
New
update2024.11.06 11:10

USD/CAD surges to 1.3900 neighborhood as Trump trade boosts USD

The USD/CAD pair rallies over 80 pips from a two-week low, around the 1.3820-1.3815 region touched during the Asian session on Wednesday, reversing the previous day's losses and snapping a two-day losing streak.
New
update2024.11.06 11:08

WTI drops below $71.50 after the first US election results

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $71.35 on Wednesday.
New
update2024.11.06 10:42

Gold price bulls remain on the sidelines, around $2,740 after early US election results

Gold price (XAU/USD) struggles to capitalize on the previous day's bounce from the $2,725-2,724 area, or a one-and-half-week low and attracts fresh sellers during the Asian session on Wednesday.
New
update2024.11.06 10:38

US Election 2024: Pennsylvania early exit polls point to a Harris win

A tight 2024 United States presidential election is seen leaning in favor of Republican nominee Donald Trump.
New
update2024.11.06 10:33

Australian Dollar falls ahead of US election results, Georgia exit polls tilt toward Trump

The Australian Dollar (AUD) retraces its recent gains against the US Dollar (USD) on Wednesday as market anticipation builds ahead of the US presidential election outcome.
New
update2024.11.06 10:29

Japanese Yen slumps to 153.00 against USD after initial US election results

The Japanese Yen (JPY) touches a two-week high against its American counterpart during the Asian session on Wednesday after Bank of Japan (BoJ) minutes showed that the central bank will continue to hike interest rates if economic and price forecasts meet.
New
update2024.11.06 10:09

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Cancel