GBP saw relative stability in Q1 after a torrid 2022. Economists at Credit Suisse believe that the GBP/USD could reach over the second quarter.

Relative ECB hawkishness should allow for an upward EUR/GBP drift

“Relative ECB hawkishness should allow for an upward EUR/GBP drift, but we suspect the BoE will not be shy to hike rates still more if the data support that, and so GBP/USD can rise towards 1.2650 over the quarter.”

“If we are wrong and the BoE decides to see through high inflation and shift in a materially dovish direction for reasons such as financial risk, EUR/GBP would quickly move above 0.9000.”