GBP/USD can move toward the 1.33 area near term – ING

Economists at ING analyze GBP/USD outlook.

Two more BoE rate hikes

We can see GBP/USD moving towards the 1.33 area near term. But GBP is subject to the same forces that recently sunk the Dollar – e.g. a soft inflation print could hurt.

At the moment we look for two more BoE rate hikes – policy rate to 5.50% – but well below the 6%+ rates priced by the markets.

GBP/USD – 1M 1.29 3M 1.29 6M 1.31 12M 1.34

See: The Pound is likely to weaken further in the medium term – Commerzbank