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MUFG on why GBP should fall (spoiler - hard to see 3 Bank of England rate hikes ahead)

MUFG on why GBP should fall (spoiler - hard to see 3 Bank of England rate hikes ahead)

Via a note from Mitsubishi UFJ Financial Group Inc (MUFG) on sterling. MUFG see prospects for a fall saying they view expectations for impending Bank of England rate hikes as over done. MUFG say to watch data flow this month, if weakness shows

  • It is hard to see what the BOE would cite as justification for one further hike let alone three hikes as priced in the market
  • March data for the U.K. is crucial now

Weak data would be a reason for the BoE to pause on hike... Read More

Posted: Mar 1 2023, 22:49
Author Name: forexlive
Views: 112525

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