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22 Feb 2013
Forex Flash: GBP/USD likely to fall to 1.48 - HSBC
The fall in GBP has been substantial but on a historical basis this is still not the case, says HSBC.
"If we were to return to historical precedents, then a further significant leg down can not be ruled out, but for now, our downward revisions to an already bearish GBP profile are less potent, but nonetheless argue for further GBP weakness ahead."
The bank expects GBP/USD "is likely to fall to 1.48 and EUR-GBP may rise to 0.91 by year end but the historically minded will keep their eyes on GBP’s troubled 2009 extremes."
"If we were to return to historical precedents, then a further significant leg down can not be ruled out, but for now, our downward revisions to an already bearish GBP profile are less potent, but nonetheless argue for further GBP weakness ahead."
The bank expects GBP/USD "is likely to fall to 1.48 and EUR-GBP may rise to 0.91 by year end but the historically minded will keep their eyes on GBP’s troubled 2009 extremes."