The Great British Pound (GBP) and the United States Dollar (USD) pair is said to the need support of a hawkish central bank. According to economists at Scotiabank, hawkish remarks are needed to lift the pound.
The GBP/USD awaits the Bank of England’s Governor Andrew Bailey’s speech at the ECB forum in Sintra, Portugal on Wednesday.
‘‘There are no domestic drivers for GBP price action until tomorrow’s address by BoE Gov Bailey where we’re looking for confirmation that the bank will tighten by 50 bps in Aug’.
”With weak UK growth and global recession fears, the GBP will need the support of a hawkish central bank.” report reads.
Markets have set a high bar for the BoE with 165 bps in hikes expected by year-end. Therefore, further downside on the crosses for the GBP looks more likely.
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