Very inverted yield curve may help the Pound – ING BOE EURGBP InterestRate YieldCurve Banks
150 bps of tightening was already priced in before the meeting, and investors are now looking at a 6.0%+ peak rate after the hike. The attempt by the BoE to get ahead of the curve with more aggressive tightening is being accompanied by rising speculation that this will trigger monetary easing starting in the summer of 2024. Still, that price development is not enough to impact the highly inverted shape of the GBP yield curve.
From a currency perspective, a sharply inverted yield curve can work as a positive factor for a reserve currency like the Pound . We suspect that a rebound to 0.88 in EUR/GBP will need to be delayed on the back of that.Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Boxing pound-for-pound rankings: Teofimo Lopez back in Top 10, or is he?Teofimo Lopez's victory over Vasiliy Lomachenko on Oct. 17, 2020, which seems so long ago, remains the signature victory over his career. But his win over Josh Taylor at Madison Square Garden in New York on June 10 was equally significant.
Read more »
GBP/USD: The near-term bias is for 1.30 – INGSterling continues to ride high. Economists at ING discuss GBP outlook ahead of the Bank of England (BoE) meeting. Sterling can hold onto gains in the
Read more »
Hawkish SNB to keep USD/CHF offered, targeting May's 0.8820 low – INGThe Swiss National Bank (SNB) meets to set rates today. Economists at ING analyze CHF's outlook ahead of the decision. Majority of economists are goin
Read more »
More hawkish policy overseas can keep the Dollar offered – INGIt is a big day for central bank policy meetings around the world. Economists at ING discuss implications for the US Dollar. Rest of World catch-up wi
Read more »
EUR/GBP can easily trade back to 0.88 over coming months – INGEconomists at ING discuss GBP outlook ahead of the Bank of England (BoE) meeting today. Softer Dollar environment should keep GBP/USD bid We think EUR
Read more »
USD/TRY to stay stable assuming the CRBT does deliver on the large hike – INGEconomists at ING discuss the Turkish Lira (TRY) outlook ahead of the Central Bank of the Republic of Türkiye (CBRT) Interest Rate Decision. Large rat
Read more »