GBP/USD Daily
HSBC analyses the factors behind sterling’s strong performance in 2024 and discusses potential challenges ahead. While the currency has been resilient due to rising interest rates, HSBC warns that the outlook may not remain favourable, especially with further rate cuts expected from the Bank of England.
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While sterling has shown remarkable resilience in 2024 due to higher interest rates, HSBC sees potential challenges ahead. Continued interest rate cuts by the Bank of England, coupled with a narrowing of the interest rate advantage, could lead to a decline in sterling strength, with targets for GBP/USD set at 1.26 by the end of Q3 and 1.25 by the end of Q4.
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