British Pound
In this report, we review our trade recommendations based on incoming data in the last month.
An update to our views on UK rates and currency following today’s Bank of England meeting.
The UK labor market remains far too tight to expect wage growth to slow to levels consistent with the Bank of England inflation target. A true recession with rising unemployment is needed to finally slay the UK inflation beast. 2024 rate cuts are off the table, with the central bank having to keep monetary policy tighter for longer than markets expect and the UK economy now rebounding. We recommend downgrading UK gilts to underweight in global bond portfolios, while also looking for opportunities to buy the British pound on pullbacks versus the euro, Canadian dollar and Swedish krona.
In this report, we review what our technical indicators are telling us about the G10 currencies.
In this report, we review our trade recommendations based on incoming data in the last month.
In this Insight, we discuss our rationale for a short sterling position.
