RBC are forecasting a retest of the recent lows in GBP/USD - in the months ahead

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RBC are forecasting a retest of the recent lows in GBP/USD  - in the months ahead

<p>A snippet from RBC on what they see for the Bank of England and cable ahead. </p><p>On the BoE, RBC say that the terminal rate of approximately 6% "priced into the market (including moves of at least 100 bps at each of the remaining two meetings this year)" is not tenable, its too aggressive. </p><p>RBS project:</p><ul><li>a 75 bps hike in November, which is enough for the BoE to "send a message"</li><li>50 bps increase in December</li><li>raise their terminal Bank Rate forecast to 3.75% (was at 3%).</li><li>add they think the beginning of QT will be delayed past October</li></ul><p>On GBP/USD:</p><ul><li>(the recent multi-decade low) "could be re-tested in the coming months"</li></ul><ul><li>Government energy support will help households but won't fix the UK's current account and budget deficits, and some currency adjustment will be needed to attract capital inflows.</li></ul><p>---</p><p>I posted earlier in the week that:</p><ul><li><a href="https://www.forexlive.com/news/goldman-sachs-forecasting-gbpusd-to-105-citing-fundamentals-a-difficult-policy-mix-20221010/" target="_blank" data-article-link="true">Goldman Sachs forecasting GBP/USD to 1.05, citing fundamentals, & a "difficult" policy mix</a></li></ul>

                This article was written by Eamonn Sheridan at forexlive.com.

Source: RBC are forecasting a retest of the recent lows in GBP/USD  - in the months ahead

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