The pound is one of the best performing currencies since the beginning of the week following the confirmation of a new deal between the UK and the EU on Northern Ireland. However, this impact could only be temporaryreport ING economists.
The pound could continue to prove more resilient than other procyclical currencies
“It seems difficult for the pound to find sustained support simply based on the new agreement on Northern Ireland. Instead, the central bank story should continue to be the main driver for GBP and given the lack of data today, markets will be watching today’s three Bank of England speakers: Jon Cunliffe, Huw Pill and Catherine Mann. “.
“Markets are definitely oscillating to the hawkish side, expecting a full 80 basis points of tightening before topping out. For now, global central bank talk and improving UK data are not on the cards. giving plenty of reason to undo such hawkish expectations, and sterling could continue to prove more resilient than other procyclical currencies.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
