GBPUSD held near 1.15 the past week before dipping to 1.12 on a dovish 75 basis points hike by the BoE. Economists at Westpac see Cable trading at 1.20 and 1.27 by end-2023 and end-2024, respectively.

Market confidence and reduced energy and inflation risks expected to win out

“The road ahead is fraught with risk as Prime Minister Rishi Sunak’s Government hold off on further stimulus and likely tighten their stance while the economy is very weak.” 

“Inevitably, market confidence and reduced energy and inflation risks are expected to win out, sending the GBPUSD higher – to 1.20 and 1.27 come end-2023 and end-2024.”