British Pound: Faces policy and political risks – ING
ING’s Chris Turner highlights several risks for the Pound, centred on the Bank of England meeting and a key Labour by-election. Markets now see the first BoE rate hike in November, and lower energy prices may question the need to tighten at all, while EUR/GBP is seen holding strong support around 0.8610/15.
BoE stance and UK politics weigh on Pound
"Markets have pushed back expectations of the first Bank of England rate hike until the November meeting."
"Lower energy prices can prompt questions about whether the BoE needs to hike at all, and Governor Andrew Bailey will have to walk a fine line this Thursday."
"A victory by Andy Burnham would formally fire the starting pistol on the Labour leadership contest and likely weigh on sterling."
"EUR/GBP is currently holding strong support in the 0.8610/15 area, and we would expect that to hold this week."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Wall Street Sees Nifty at 30,000: Why Are Foreign Investors Still Selling Indian Stocks?
UBS: Maintains Tesla (TSLA.US) “Neutral” rating, target price $385, AI narrative dominates stock price pricing logic
UBS predicts that Tesla's global deliveries in the third quarter of 2026 (3Q26) will be approximately 470,000 vehicles, representing a year-on-year decrease of 5% and a quarter-on-quarter decrease of 1%.
Altcoin Price Targets Point to Six 2027 Levels
The AI frenzy withstands the "5% US Treasury yield"! Nasdaq hits new highs, strengthening the "80/20" pattern as Wall Street reassesses stock-bond allocation
The 30-year US Treasury yield briefly reached about 5.53%, hitting its highest level since 2004, while Brent crude remains above $100 per barrel. Risk assets have once again withstood the pressure, reflecting investors' continued belief that the commercialization of AI applications and corporate profit growth can to some extent offset the impact of rising financing costs and discount rates.
Crypto prices
More
