GBP: Market turmoil continues – Commerzbank

  • 📰 FXStreetNews
  • ⏱ Reading Time:
  • 18 sec. here
  • 5 min. at publisher
  • 📊 Quality Score:
  • News: 21%
  • Publisher: 72%

GBPUSD News

Technical Analysis,Banks,BOE

After the market sent out the first warning signs of the new UK budget on Wednesday, it continued seamlessly yesterday, with UK government bond yields rising sharply and the pound depreciating.

Moreover, since Tuesday, a rate cut of around 25 basis points by next September has been priced out. Clearly, the market has serious concerns about the new budget, Commerzbank’s FX analyst Michael Pfister notes. BoE rate cut next week is still likely “Although a lot of information was deliberately leaked in the run-up to the release market participants were surprised by the extent to which the new budget is geared towards delivering more growth in the short term.

And while the risks of another rate pause at the December meeting have increased, it should be remembered that the BoE has been rather dovish of late. It will probably want to cut rates sooner rather than later, which means that another cut in December is still on the table. Of course, a lot depends on how next week's decision is communicated.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 14. in ZA

South Africa South Africa Latest News, South Africa South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

GBP/USD depreciates to near 1.2950 due to market caution ahead of US presidential electionGBP/USD extends its losses for the second successive day, trading around 1.2950 during the Asian session on Thursday.
Source: FXStreetNews - 🏆 14. / 72 Read more »

Streamline Strategic M&A Decisions with a Market Intelligence Platform - SPONSOR CONTENT FROM S&P GLOBAL MARKET INTELLIGENCESponsor content from S&P Global Market Intelligence.
Source: HarvardBiz - 🏆 310. / 63 Read more »

Chinese Stock Market: A 'Bear Market Rally' Could Be on the HorizonStocks Analysis by Charles-Henry Monchau covering: Nasdaq 100, Gold Spot US Dollar, S&P 500, US Small Cap 2000. Read Charles-Henry Monchau's latest article on Investing.com
Source: Investingcom - 🏆 450. / 53 Read more »

Prosecutors Charge Four Crypto ‘Market Makers,’ Employees With Market Manipulation, FraudCheyenne Ligon is a CoinDesk news reporter with a focus on crypto regulation and policy. She has no significant crypto holdings.
Source: CoinDesk - 🏆 291. / 63 Read more »