In the Asian session on Monday (May 22), the latest price of GBP/USD was 1.2485, and the opening price was 1.2486. According to institutional analysis, the pound may face the impact of the market’s re-pricing of the Bank of England interest rate.
Institutional analysis said that if the UK’s April inflation data released this week prompts the market to reduce expectations for the Bank of England to raise interest rates, the pound will face the risk of further decline against the euro. Analyst Francesco Pesole said the inflation report, due on May 24, is a “significant risk event” for EUR/GBP, and given that the market has “considerable room” to price in a Bank of England rate hike, the pair could be on the mend. rise. Their target this summer is still 0.88-0.89.
