fxs_header_sponsor_anchor

News

Downside risks for sterling remain high – Commerzbank

The Bank of England (BoE) announced a temporary pause to corporate bond sale operations this week. However, the British pound is set to remain under downside pressure, economists at Commerzbank report.

Stress on the gilt market

“The stress on the gilt markets continues. The yields for British gilts have risen notably again. As of next week, a new programme (temporary repo facility) is supposed to ensure that the stress on the bond markets eases. However, the market seemed disappointed that the BoE will end the bond purchases on Friday as originally planned. The announcement of the new programme did not really calm the markets.”

“In the end, the BoE’s measures do not change the fact that the British government’s tax cut plans shocked the markets. Nervousness is likely to remain high for now and as a result also the downside risks for sterling.”

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.