GBP – Sterling rallied on Thursday, and investors reined in their bets on a big Bank of England interest rate hike in November as UK Prime Minister Liz Truss announced her resignation just six weeks after she was appointed.
Despite GBP’s initial rally, Vanda Research cautions: “Initially, this is likely to take an uncertainty premium out of the market but it depends who takes over. You need a steady hand at the top.”
Additionally, Societe Generale notes: "I still think sterling will go down, not up, because rates won’t go as high as traders expect, but I think you’ve probably already seen the low in cable.”
Despite GBP’s initial rally, Vanda Research cautions: “Initially, this is likely to take an uncertainty premium out of the market but it depends who takes over. You need a steady hand at the top.”
Additionally, Societe Generale notes: "I still think sterling will go down, not up, because rates won’t go as high as traders expect, but I think you’ve probably already seen the low in cable.”