BoE Preview: A 50 bps hike would see GBP rally – SocGen

Market news

22 June 2023

BoE Preview: A 50 bps hike would see GBP rally – SocGen

The Bank of England (BoE ) is caught between a rock and a hard place. Kit Juckes, Chief Global FX Strategist at Société Générale, analyzes GBP outlook ahead of the Interest Rate Decision.

GBP has benefited from aggressive BoE tightening. Is that set to change?

The BoE is expected to hike by 75 bps by the August meeting, and two-thirds of the market thinks we will get 25 bps today, with 50 bps more by August.

So far, rate expectations have been the main driver of EUR/GBP and on that basis, a 50 bps hike would see GBP rally. But the inflation/growth trade-off is getting worse and worse and at some point, rate hikes ought to be bad for Sterling rather than good. Has that point arrived?

See – BoE Preview: Banks expect 25 bps, door open to further hikes

Currencies. Daily history for Thursday, June 22, 2023

Commodities. Daily history for Wednesday, June 21, 2023

Market Focus

Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer

Open Demo Account & Personal Page

Personal area

support@teletradepartners.com

Risk Warning: Trading in the financial markets (including trading on margin) provides a wide range of opportunities and enables investors ready to take risks to make high profits, but it carries a potentially high level of risk of loss. Therefore, prior to trading you should take into careful consideration whether such operations are suitable for you in terms of your level of knowledge and financial situation.