EUR/GBP target lowered to 0.8450 and GBP/USD target raised to 1.2800.

One of Credit Suisse’s most consistent views over the course of 2023 has been GBP bullishness. Economists at the bank take a fresh look at the Pound.GBP could well become and then remain among the highest yielders in G10 space

Getting to a 5.75% rate by December as markets are pricing may simply be too slow and the BoE might yet need to start hiking in 50 bps increments again, as it last did in Feb. It’s also the case that GBP could well become and then remain among the highest yielders in G10 space, something which can attract carry-chasing money to the UK at a time of low global asset volatility.

We see room for the broad trade-weighted GBP to test post-2016 highs seen in early 2022 around 2% above current levels. We lower our near-term EUR/GBP target to 0.8450 and raise our GBP/USD target to 1.2800, levels at which we would finally be tempted to take profit if reached quickly.

EUR/USD retakes 1.0800 as US Dollar weakens ahead of Fed

EUR/USD is trading around 1.0800, back on the bids in the European trading hours. The pair is capitalizing on the renewed weakness in the US Dollar alongside the US Treasury bond yields. Investors refrain from placing fresh bets on the major ahead of the Fed policy decision.

EUR/USD News

GBP/USD rebounds toward 1.2650 after UK data, Fed decision eyed

GBP/USD is attempting a rebound toward 1.2650 despite the mixed UK GDP and Industrial Production data releases. The US Dollar is losing ground amid jittery markets, awaiting the Fed rate pause announcement following soft US inflation data.

GBP/USD News

Gold defends 100-day SMA ahead of the crucial FOMC decision

Gold price once again attracts some buyers near the 100-day SMA on Wednesday and recovers a part of the previous day’s slide to the weekly low. The XAG/USD sticks to its modest intraday gains heading into the European session and currently trades just above the $1,945 level.