This is via the folks at eFX.
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- Goldman Sachs Research maintains a bearish bias on GBP over the coming weeks.
- "The Bank of England delivered a 75bp rate hike last week which—on the surface—matched its counterparts at the Fed and ECB. But the messaging was very different, especially from that of the FOMC. By explicitly talking down the market curve, and implicitly suggesting that the market should be pricing less than half of what it had in late October, the BoE strongly pushed back that the larger hike marked a change in its approach," GS notes.
- "We continue to think that Sterling should underperform given the difficult external environment and less support from real rates, and we continue to forecast further downside against both the Euro and Dollar," GS adds.
