The British pound remains the best-performing G10 currency so far in 2023. HSBC economists weigh the outlook for the pound sterling.
Any move above 1.30 will be brief
Positioning and valuations are an obstacle to continue rising.
Even a 50 basis point hike by the Bank of England (BoE) on Thursday may not provide lasting support for the currency, especially given likely downward revisions to inflation forecasts and a divided vote. There is a strong possibility that the BoE will raise rates by just 25 basis points, which will likely weaken the GBP immediately.
We expect GBP/USD to weaken and challenge the 1.26 support in the coming weeks, while any move above 1.30 is likely to be short lived.
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.
