#GBPUSD @ 1.05982 to test all-time around 1.0350 despite emergency BoE bond-buying – BBH
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Sterling is underperforming again today despite plans for emergency Bank of England (BoE) bond purchases. Economists at BBH expect the GBP/USD pair to test the low of 1.0350.
“The BoE noted that to achieve its objective of maintaining financial stability, ‘the Bank will carry out temporary purchases of long-dated UK government bonds from 28 September. The purpose of these purchases will be to restore orderly market conditions.”
“Yet neither higher rates nor the emergency bond-buying plan have done anything for sterling. Market confidence, once lost, is always difficult to regain.”
“We look for an eventual test of this week’s new all-time low near 1.0350.”
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